Boat for Sale
Carson, one of four Sector BPI Plus portfolios, is the account up for review this Monday morning. After correcting for the Telecom/Communications BPI error, no sectors are recommended for purchase. Sector BPI managers are most likely holding shares of Utilities (VPU) as it moved into the Sell zone several weeks ago. Technology is also a Sell. However, the Carson has yet to hold shares in this sector.
When I next post BPI data readers will find the Telecom column is replaced with the correct sector, Communication Services.
Carson Security Recommendations
Based on BPI recommendations there are no changes in the Sector portion of the Carson. Next we move down into the Dual Momentum™ section of the investment quiver where we find VEA is now a Hold instead of a Buy. I placed a limit order on the 60 shares of VEA and a limit order to purchase 5 shares of VTI. Cash is limited.
All CEFs call for a Sell so I have limit orders in place to sell shares of these income oriented securities. The orders tend to be high enough that most CEFs will likely be held through the second quarter in order to collect dividends.
Carson Performance Data
The following data takes in nearly 17 months of information. Thus far the Carson is performing quite well compared to the S&P 500 (SPY).
Carson Risk Ratios
All risk ratios are positive. That in itself is an accomplishment. The slope of Jensen’s Alpha is close to positive and we should break through before the end of the third quarter.
As the first portfolio to move to the Sector BPI model, the Carson is performing as expected from the underlying sector hypothesis. However, it is still too early to draw any significant conclusions.
Tweaking Sector BPI Plus Model: 20 May 2023
Copernicus Buy & Hold Portfolio Review: 18 May 2023
Portfolio Summary: 16 January 2023
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Lowell, why, in this instance, did you choose a limit sell order on VEA rather than your usual TSLO?
Steve
Steve,
VEA is a Hold instead of a Sell. Slight difference, but that is why I made the choice.
Lowell
Lowell,
I thought CEF’s were held as an income asset in these Tweaked portfolios and did not factor in the spreadsheet as a BSH. They are held as long as the yield and NAV satisfy the criteria.
Bob W.
Bob W.,
While I am still in the testing phase, here is my current thinking.
1. Sector recommendations come first. If I need to raise cash to fill the sector recommendations, CEFs are first to be sold out of the portfolio.
2. Second to be sold, if cash is needed to fill sector recommendations, is the Dual Momentum holding. I don’t see this happening frequently, but it might in extreme market conditions.
3. CEFs are held when excess cash is available. This will occur when there are few sector recommendations and the DM recommendation is also full.
As the different Sector BPI Plus portfolios come up for review, I’ll explain my decision making process. When there are questions, post them here in the Comment section provided with each blog and I’ll do my best to answer.
Lowell