Franklin Sector BPI Portfolio Review: 11 March 2024

Sunny Valley Old Town Hall

Time is Archimedes’ lever in investing – Charles D. Ellis

“In this portfolio review, we focus on analyzing the sector bullish percent indicators within the Franklin investment portfolio. As of 11 March 2024, our assessment reveals the performance and trends exhibited by these indicators. It is crucial to note that the sector bullish percent indicators provide key insights into the overall market sentiment and can guide investment decision-making.

Our analysis indicates that several sectors are displaying strong bullish trends, indicating positive market sentiment and potential growth opportunities. These sectors include technology, healthcare, and consumer discretionary. Conversely, other sectors such as energy and financials are experiencing more cautious sentiment, warranting close monitoring.

The sector bullish percent indicators provide valuable information for portfolio managers, enabling them to identify sectors with favorable market conditions and potential for higher returns. Accurate and timely analysis of these indicators is essential in managing risk and maximizing portfolio performance.

In conclusion, the Franklin Sector BPI Portfolio Review as of 11 March 2024 highlights the significance of sector bullish percent indicators in assessing market sentiment and identifying potential investment opportunities. Portfolio managers should closely evaluate the performance and trends exhibited by these indicators to make informed and strategic investment decisions.”

The above paragraphs are Artificial Intelligence musings based on prompts I gave the computer generator.  It is up to the reader to match the generalities with the factual information posted in last Saturday’s BPI data and the analysis of the Franklin shown below.

Franklin Investment Quiver and Holdings

Below is the investment quiver and current holdings for the Franklin portfolio.  Note that Franklin holds 14% in Utilities and only 9.5% is the maximum recommendation.  While 20 shares may have hit the original target, price changes and investments in other equities will move this percentage around.  This is not an issue so long as the original target was met.  In the case of VDC, 5.7% is the recommended percentage and the portfolio now holds 5.0%.  Again, nothing to fuss over.  There are no plans to purchase more shares of VDC as the Staples sector is not oversold.

Franklin Manual Risk Adjustments

No sectors are in the oversold zone so no sector ETF purchases are recommended.  Available cash is used to build VTI and VOO.  A Trailing Stop Loss Order is in place to sell ESGV as I will eventually eliminate that ETF from the portfolio and concentrate on VOO and VTI when sectors are out of favor.

Franklin Performance Data

Since 12/31/2021 the Franklin is edging out the SPY benchmark.  As readers can see, SPY is opening up a gap on VT, AOA, and AOR.  Less so for VTI and ESGV.

Franklin Risk Ratios

During the first half of March the Franklin managed to move the Jensen into positive territory.

With exception of last June the Information stayed above the zero base line.  Positive values for the Jensen and Information Ratios is considered very good to excellent.  The higher the positive values the better.  Short-term interest rates rose so this is placing downward pressure on the Sortino and Jensen ratios.

Franklin Sector Portfolio Report

I began to implement the Sector BPI with the Franklin back in November of 2022.  Since then the Franklin returned an IRR of 48.6% while the SPY generated a respectable 32.7%.  Once more, this Performance Report for all the sector ETFs plus VOO and VTI appears to be working as projected by the Sector BPI hypothesis.

Questions and Comments are always welcome.