Carson Sector BPI Portfolio Review: 28 June 2024

Bicycle Clock

This morning the Carson Sector BPI (named for Rachel Carson) portfolio is due for an update.  As the oldest Sector BPI portfolio the Carson is also a top performing portfolio.  As one of several portfolio using the Sector BPI investing approach checking up on the bullish status of the eleven market sectors is critical.  Early this morning I checked on the sectors closest to the oversold zone and none are signaling a purchase.  Materials is the sector closest to the oversold zone and it is holding steady at nearly 38% bullish.

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Back when this blog was a pay-to-read site a portion of the profits were donated and used to provide capital to individuals who did not have access to capital.  The organizations I used were MEDA and Kiva.  MEDA no longer runs small donation projects, but Kiva is alive and still raising money.  I checked my Kiva account the this morning and according to their records profits from ITA provided 495 loans in 67 countries.

Carson Security Holdings

Below is the investment quiver and the current Carson holdings.  VDC is the primary sector holding as VCR and VOX are “shard” holdings.

Since no sectors are oversold we look to U.S. Equities as a place to invest money.  VTI and VOO are my two favorite “go to” ETFs.

Carson Manual Risk Adjustments

To review, I first adjust the SD Multiplier so the Stop Loss percentage for VTI is 8.0%.

The following worksheet is used to recommend how many shares to purchase in the different ETFs.  The current recommendation is to add 28 more shares of VTI to the portfolio.  I have limit orders set to meet this recommendation.

The market is facing uncertainty due to our current political system and situation.  For this reason I will not be rushing to put available cash to work.

Carson Performance Data

Since 12/31/2021 the Carson holds a commanding lead over the SPY benchmark.  The gap is even wider for other potential benchmarks.

Carson Risk Ratios

While the risk ratios are all quite strong, the Carson is not keeping pace with the SPY when we check the year-long trend or slope of the Jensen Alpha.  This lag is most likely related to the 29% held in cash in a rising market.

Carson Sector Portfolio Report

It was in May of 2022 when I converted the Carson over to the Sector BPI investing model.  The following table shows how well the various sector ETFs performed as well as VTI and VOO.  Based on a little over two years of data, the Sector BPI investing model is working very well.

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