Pier Fishing
Franklin is one of four Sector BPI portfolios tracked here at ITA. This is a unique investment model not found elsewhere to my knowledge. If you are following the Sector BPI method the other three portfolios are: Carson, Gauss, and Millikan.
What happens when multiple sectors fall into the over-sold zone and the recommended percentage for each sector adds to more than 100%? This requires some decision making and that is what follows below.
Franklin Sector BPI Recommendations
We currently have six sectors in the over-sold zone and the Franklin also holds shares in VPU, no longer in the over-sold zone. This leaves us with some decision making. In this first screenshot I show the Shares Held (second column from the left) and the Shares to Hold (8th column from the right).
I still have nearly $680 cash available so I will be able to purchase a few more share in one or more over-sold sector. I’ll likely add to the sector most beaten down after the close of the market today. This requires updating the BPI spreadsheet. I would not be surprised if this is not the Financial sector. Energy is showing a low percentage of bullish stocks, but I hold sufficient shares of VDE to bring the percentage up to 25%. In fact the Franklin holds 26% of the portfolio in Energy.
Franklin Performance Data
Since the end of 2021 the Franklin climbed out of a hole and is currently outperforming the S&P 500 (SPY) as well as several other potential benchmarks listed below. I may have mentioned that the latest revision of Investment Account Manager by default is now including three major indexes as part of the benchmark list. The six at the top of the list below are my personal selections to include as benchmarks.
Franklin Risk Ratios
Most of the risk measurements are showing improvement since last fall when I first introduced the Sector BPI model. While it is still much too early to draw any conclusions, the trends are in the right direction.
Buying Guidelines For BPI Model Portfolios: 9 December 2022
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