Canby Ferry
We begin a busy week of updates and reviews as at least one portfolio is scheduled each day. Last Friday the Sector Bullish Percent Indicator (BPI) flashed a buy for Real Estate (VNQ). Shares will be purchased this morning for those portfolios.
Carson is the account up for a review this morning. Check the analysis that follows.
Carson Sector Portfolio
There is insufficient cash available to bring Materials and Real Estate into balance so shares of VTI and possibly VOO will need to be sold.
Carson Rebalancing Recommendations
Before adding more shares to VAW and bringing VNQ into balance I will sell shares of VTI and VOO. Limit orders are in place to sell shares as indicated in the 6th column from the right.
Carson Performance Data
Since 12/31/2021, our launch date for all portfolios, the Carson is outperforming the S&P 500 index (SPY) by a wide margin. Only VTI is a close second. AOA and AOR, two other possible benchmarks are not even close to the performance of the Carson.
Carson Risk Ratios
When comparing January 2025 values with January of 2024 we see slippage in both value (Sortino) and trends (Jensen Alpha). The decline in the Jensen Performance Index is telling us that the Sector BPI model is not resistant to a declining market of the type we are now experiencing.
Once shares of VNQ are added to the portfolio we will see over the next few months whether or not the oversold sectors will actually perform better than the broad U.S. Equities ETF, VOO. In a sense, the next few months will be an excellent test of the Sector BPI investing model.
To new readers who might have registered for a Platinum membership, I continue to highly recommend an individual or family hold at least one “Intelligent Portfolio” in the family account. Follow the Schrodinger for such a portfolio.
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