Bicycle Hub
Of the numerous Sector BPI portfolio tracked here at ITA, Carson is the oldest. As more historical data becomes available, are there any weaknesses showing up in the model? Perhaps, so follow along with this analysis.
As yet I’ve not added VEA and VWO to the investment quiver. Thus far I’ve only added these international asset classes to the poorer performing portfolios. Carson is not one of them.
Carson Security Holdings
Below is a table showing the current holdings within the Carson portfolio. TSLOs are set for VAW and VHT as both sectors were recently overbought. How to invest the nearly $25,000 in cash requires some decisions. Cash is now nearly 45% of the portfolio?
Carson Manual Risk Adjustments
I elevated the Maximum Portfolio Risk to nearly 12% which in turn ends up recommending more shares be added to VTI and VOO. This still leaves over $14,000 in cash.
Limit orders are set to add 20 shares of VTI and 13 shares of VOO. At least one of these orders hit the strike price since I began writing this blog.
One weakness I see in the Sector BPI model has to do with holding too much cash in a rising market. We are in that situation right now. This is a difficult time to maintain any cash holdings as cash is not taking advantage of a rising market.
Carson Performance Data
Over the past 25 months the Carson maintains a commanding lead over the SPY benchmark as well as all five potential benchmarks. The gap is quite wide when we check the IRR for the Period under investigation.
Carson Risk Ratios
Both the Information and Jensen Ratios slipped this past month. One can tie this slippage to holding too much cash in a rising market. Overall, the values are quite strong.
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