Not Buffalo
What changes if any are required of the Carson Sector BPI portfolio based on BPI data from last week? Follow the analysis below to see if any changes are required by the sector BPI rules. If you recall, only VDC and VGT are implicated or require investigation. VDC is over-bought and VGT is over-sold.
Carson Sector BPI Recommendations
The Carson does not hold any shares of VDC so we need not worry about setting a Trailing Stop Loss Order (TSLO).
Since VGT is over-sold we need to check to see if we are holding the maximum recommended shares of Technology. Examining the third column from the left, we want VGT to hold 25% of the portfolio. Checking the second column from the right we find that VGT is holding 24.2% of the Carson and this meets the 25% requirement.
Conclusion: No changes are required for the Carson. We will check on the Carson again next week.
Carson Performance Data
The following data runs from 1/1/2022 through 12/29/2022 or one year. While the Carson lost an annualized 3.5%, all the possible benchmark lost considerably more. Now we need to see if we can maintain this delta throughout 2023 using the Sector BPI Model.
Carson Risk Ratios
Nearly all the risk ratio data was built using the LRPC model. From now on, compare the most recent months of data to see how well the new sector model is working.
Carson Portfolio: Creating A New Investing Model
Buying Guidelines For BPI Model Portfolios: 9 December 2022
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Hi Lowell,
I’m interested in following your adjusted Carson Portfolio. Howeve, I’m a novice. Can you point me to a simple explanation of risk ratios for your varied portfolios? I don’t understand the term. Thanks.
TF
TF,
One of the best sites to go for information is the following.
https://www.investopedia.com/
Then use the magnifier icon in the upper right-hand corner to find what you are looking for. Examples: Search for Information Ratio, Sortino Ratio, and Jensen. The Jensen also goes by Jensen Alpha or Jensen Performance Index.
While I measure several risk indexes, I also set up a formula where I combine the various risk factors giving each a different weight so I can rank the portfolios based on both return and risk.
Lowell