Craters of the Moon – Idaho
Before moving into the Einstein update, users of the Sector BPI investing model need to be aware that Discretionary, Energy, and Technology dropped into the oversold zone. I purchased shares of VCR, VDE, and VGT for several portfolios this morning.
And now for the Einstein update. As mentioned in several blogs back, the owner of the Einstein needs to hold a significant amount of cash to meet financial requirements over the next six months. As a result of the large cash holding the Einstein resisted major losses during this equities draw-down. During this period one could have brought the various asset classes into balance by picking up shares at lower prices. That will need to wait till a later date when this portfolio becomes more stable.
The old adage of “Selling in May and go play” is looking more and more spot on.
Later this week I will review the McClintock, Gauss, and Pauling portfolios. Two are Sector BPI portfolios while the Pauling is an asset allocation portfolio.
Einstein Asset Allocation Security Holdings
Below is the investment quiver and current holdings for the Einstein.
Einstein Performance Data
Since moving to the Asset Allocation model I’ve also switched benchmarks from SPY to AOR for the Einstein. Since 12/31/2021 the Einstein has not managed to match the AOR benchmark.
Einstein Risk Ratios
While it is still very early in August, due to the high level of cash the Einstein managed to pick up a little ground on the Jensen and Information Ratios. By this time next summer I hope to see a positive slope for the Jensen Performance Index. The Jensen is also known as the Jensen Alpha. We are always seeking a positive alpha for all portfolios.
Returning To Investing Roots: 5 August 2024
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