Franklin is another Sector BPI Plus portfolio where we use sector ETFs as the primary security source based on information that comes out of the Bullish Percent Indicator data. At this time no sectors are listed in the oversold zone and we already have all the overbought sectors either sold or still holding Trailing Stop Loss Orders. VOX is the exception as we continue to hold this sector ETF.
Franklin Investment Quiver and Holdings
While the prices below date back to 9/1, I’ll update prices after the market opens this morning. No changes in the sector ETFs as none have yet reached the oversold (<30% bullish) zone.
Franklin Security Recommendations
The BHS investing model is showing Sell for all U.S. Equities. Under these conditions where neither sector ETFs or U.S. Equities are recommended there are two choices. Leave cash in the money market or move it to BIL. Since two sectors are approaching the oversold zone I’ll make the decision after the market opens in the morning.
Franklin Manual Risk Adjustments
In the following screenshot I show what the portfolio will look like if I move ahead and purchase 145 shares of BIL instead of leaving the cash in the money market. Since BIL is a low volatile ETF it is somewhat of a tossup as to which way to go.
Franklin Performance Data
Over the last 20 months of operation the Franklin is edging out the SPY benchmark. The margin of “victory” is thin and one can watch this portfolio as we move into the future to see how well the Sector BPI Plus model performs when measured against the S&P 500.
Franklin Risk Ratios
Once more, pay most attention to the Sortino Ratio, the Jensen Performance Index, and the Information Ratio. Those are the three most critical risk ratios and all should be positive. Jensen is currently missing the mark.
A fourth standard is the slope of the Jensen and it is now a robust 1.1. The slope value will decrease when we clear the September 2022 negative (-14.30) value.
Buying Guidelines For BPI Model Portfolios: 9 December 2022
Tweaking Sector BPI Plus Model: 20 May 2023
Franklin Portfolio Review: 21 July 2023
Discover more from ITA Wealth Management
Subscribe to get the latest posts sent to your email.
Notice: Utilities (VPU) dipped into the oversold zone (30% bullish) this morning so I set limit orders to pick up shares of VPU in all the Sector BPI Plus portfolios.
Lowell
Lowell,
Money market vs BIL. I believe the Fidelity Government Cash Reserve fund that extra cash goes into in my IRAs are earning close to 5% (7 day yield). Is it worth the effort to trade in and out of BIL at this point rather than keeping extra cash in money market accounts?
~jim
Jim,
Good point. I too am leaving cash in the money market as it cuts the hassle.
Lowell