Lake Oswego Sculpture – Street Art
Since the last update of the Gauss shares of VDC and VCR were sold out of the portfolio as the 3% Trailing Stop Loss Orders were struck. This leaves VIS, a shard holding, and VDE, the energy sector that took a huge leap up this past week.
The sale of VCR and VDC results in a significant amount of cash in the portfolio. Since no sectors are currently oversold the cash needs to be invested in VTI and VOO. Limit orders are in place to begin adding more shares of these U.S. Equities to the Gauss.
A few blogs back I mentioned concerns as to whether or not Schwab would adjust limit order prices down once dividends were paid. That is no longer a concern as limit prices were adjusted down after the third quarter dividends were paid. If you have limit orders set you will notice the new prices will show up to the nearest penny. This is the clue Schwab made the proper adjustments.
Gauss Security Holdings
Below are the current holdings within the Gauss portfolio. Note that Energy (VDE) is currently under the recommended 11.6%. I have a limit order in place to pick up a few more shares of VDE, but with the recent move up it is unlikely this limit order will be struck.
Since the goal of the Gauss is to outperform the S&P 500 index I will be setting more limit orders to purchase VOO.
Gauss Performance Data
Since 12/31/2021 the Gauss has outperformed the SPY ETF by nearly one percentage point. The gap is much greater over the index itself.
The Gauss is also outperforming other possible benchmarks as shown below. This lead will not continue if the market moves up and I do not invest the available 23.1% currently in cash.
Gauss Risk Ratios
Gauss was moved to the Sector BPI model in November of 2022 so we are coming up on two years of operation. This is not long to test a new investing model. The early signs are positive so I plan to continue testing this approach to investing.
The two critical ratios, Jensen and Information, are barely positive. The risk-free interest rate is a high 5.13% value and this is placing downward pressure on the Jensen.
The Jensen slope is essentially flat and once we clear November and December we might move it back into positive territory.
Gauss Sector BPI Portfolio Update: 3 January 2024
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