Einstein Sector BPI Portfolio Review: 29 December 2023

Winter Landscape

Einstein is another portfolio that switched from the Relative Strength model over to the Sector BPI investing model.  With only two months of data we need to check on trends rather than absolute performance numbers.  By this time next year we will have a much better idea as to the viability of the Sector BPI model.

This may be the last portfolio review for 2023.  Later this morning I may update the Copernicus to cap off 2023.

Einstein Security Holdings

Below are the current holdings for the Einstein.  Utilities (VPU) was recently sold as the Trailing Stop Loss Order (TSLO) was struck.  Currently, all sectors are overbought with exception of Staples (VDC) and Energy (VDE).  TSLOs are set for all current sector holding.

Einstein Manual Risk Adjustment

Since no sectors are oversold there are no purchase orders in for those tickers with the gray background.  As for U.S. Equities, all three ETFs (VTI, VOO, and ESGV) are a Buy based on recommendations that come from the Kipling spreadsheet.  Both VTI and VOO are holding more shares than currently recommended whereas ESGV is absent from the Einstein.

I placed sufficient limit orders to build ESGV up to 105 shares.  Several orders are well below the current price as I’m not in a hurry to use up available cash in this high market.  Check the Annualized Volatility (5th column from the left) and you will see values of 13% and 14% for U.S. Equities.  This tells us we can expect the U.S. market will bounce around over this next year and we will definitely see buying opportunities.  Volatility is the whole idea behind the Sector BPI investing model.  Work the old adage – Buy Low, Sell High.

Einstein Performance Data

Over the past two years the Einstein failed to keep pace with the SPY benchmark or any of the other possible benchmarks.  This performance record was one main reason for moving the Einstein to the Sector BPI model.

Einstein Risk Ratios

When risk is worked into the performance equation the Einstein did not improve from November to December.  All risk metrics are lower than they were a year ago.  Over the next year pay close attention to the Jensen Performance Index as that is the key measurement as to whether this relatively new investing model is adding alpha to the portfolio.

Here are links to other portfolios using the Sector BPI model.

Franklin Portfolio Review: 21 July 2023

Millikan Sector BPI Update: 20 July 2023

Gauss Portfolio Update: 19 March 2023