Old House near Harpers Ferry, Virginia
Rather than wait and be trapped in limbo, this adjustment to the Carson is similar to the changes I’m making with the Bohr and Bethe portfolios. Instead of relying strictly on the Sector BPI model, I’m adding options should sector ETFs rise into the overbought zone, be sold due to a declining price triggering the TSLO percentage, only to rise once more into the overbought zone without ever returning to the Buy or oversold zone. While this scenario has yet to happen to any of the Sector BPI portfolios, it could and most likely will occur over the next few years.
Combining three management approaches should patch up this weakness in the Sector BPI model.
Carson Investment Quiver
Below is what the new or revised Carson investment quiver looks likely. At the top of the list with the dark blue background we have our eleven sector ETFs. Next comes the Dual Momentum™ ETF and finally ten (10) CEFs.
No sectors are oversold and there is a minimum amount of cash available so no changes are anticipated. You will recall that yesterday Health moved into the overbought zone so I set a 3% TSLO to sell all shares (27) of VHT.
Carson Performance Data
Over the past 15.5 months the Carson is far outperforming the S&P 500. The gap widened even more since the last review. This delta will be difficult to maintain.
Carson Risk Ratios
As for taking risk into account, the Jensen Performance Index is the highest it has bee since before last April. The Information Ratio also reached a high point.
Conclusion: The Carson is performing exceeding well both from IRR and risk adjusted measurement standards.
Carson Portfolio: Creating A New Investing Model
Buying Guidelines For BPI Model Portfolios: 9 December 2022
Discover more from ITA Wealth Management
Subscribe to get the latest posts sent to your email.
Lowell,
I’ve been doing this for about 6 months with my Roth portfolio. I use the Huygens for 1/3, Bethe with BSH for 1/3 and BPI for 1/3. In other portfolios I have about 20% BPI in each. Depending on what experience shows I may increase that to 30% to 40%..
Bob W.
Bob W.,
Are you working with three different portfolios? I’m merging multiple models into one portfolio.
Lowell
Bob W. et al.,
Do you receive an e-mail message when a new blog is posted or just a bell ping on your browser? All I receive is a one bell ring.
Lowell
Lowell,
I get an e-mail. No bell ring.
Bob W.
Hm. I receive a bell ring but no e-mail.
Lowell