Franklin Sector BPI Update: 28 January 2026

“Forgotten Oregon.” Image made on Sauvie Island, near Portland, OR.

As with the Carson reviewed earlier this week, no changes are in store for the Franklin Sector BPI portfolio.  No sectors are in the oversold zone as we continue this bull market move.  Sectors in the overbought zone (70% bullish and higher) have Trailing Stop Loss Orders in place or are not part of the portfolio.  Steady as she goes is the current plan.

The nature of the Sector BPI investing model is designed to do well should we experience a recession.  We ride under-performing sectors up until they reverse.  Then we wait for such sectors to dip below their average and pick them up close to the bottom in a normal cycle and wait for the process to repeat.  The heart of the process is to take advantage of the normal reversion-to-the-mean market cycle.

With over three years of experience working with the Sector BPI model, we are beginning to move out of the hypothesis stage of development.  Think of the model as in a semi-serious theory phase which still needs more testing and history.  We need to see the Carson, Franklin, and McClintock go through another major correction before coming to confidence conclusions.  Thus far I am more than satisfied with the investing model.

Franklin Sector Holdings

Consumer Staples (VDC) was recently sold out of Franklin leaving VAW, VCR, VIS, VNQ, and VOX as the remaining sector ETFs.

What to do with the $4,000 in cash?  I split the remaining cash into limit orders for RSP and SHV.  If the U.S. Equities were well off their high I would go completely with RSP.  With the market this high I am taking a cautious approach.

Franklin Performance Data

This last month the Franklin was one of the better performing portfolios.  Since 12/31/2021 the Franklin has outpaced all benchmark with exception of the S&P 500 (SPY).  Consider it a tie with the broad market VTI.

Franklin Risk Ratios

On a risk adjusted basis the Franklin is performing at an exceptional rate.  All current January values are well ahead of where they were at this time last year.  The great performance this month shows up as a spike in the Jensen Performance Index or sometimes known as the Jensen Alpha.

Once more, share this URL with friends and family.  Comments and questions are encouraged.

The Schrodinger and Einstein are the two portfolio remaining to be updated before we enter the month of February.  Winter will soon be history in the Northwest.