Rancher and Gracie
Nearly two years ago the Millikan was moved to the Sector BPI investing model. Thus far this approach has worked out well. As we go through more sector rotations this model will undergo further testing as I still consider it to be in the hypothesis stage of development.
Yesterday’s market moved all sectors, with exception of Energy, into the overbought zone or so close we can consider the sectors to be overbought. If you have not purchased Energy (VDE) do so and then set Trailing Stop Loss Orders for 3% on all other sector ETFs that are in the Sector BPI portfolio.
The Sector BPI portfolio is not for every investor as it requires paying closer attention to market action on a week by week basis. For those holding down jobs or have little interest in the investing process, seriously consider either the Schrodinger or Copernicus models. Next in complexity are the Asset Allocation portfolios.
Millikan Sector BPI Holdings
The Millikan currently holds four sector ETFs. VFH is a shard holding, but I have a 3% TSLO in place to sell it. TSLOs are also in place to sell VCR and VDC. Based on the Max AA, the Millikan is to hold 10.8% in VDE. Currently the percentage is 11.2% which is fine.
Millikan Sector Recommendations
With the available $7,600 in cash I have limit orders in place to pick up 10 shares of VTI and 9 shares of VOO. I should show holding zero shares of VFH as Financial is overbought. If and when the overbought ETFs are sold, and no sectors are recommended for purchase, the excess cash is used to purchase more shares of either VOO or VTI. These purchases are recommended so the market does not walk away to the upside. This happens in a strong bull market and we are in such a market right now.
Millikan Performance Data
Since 12/31/2021 the Millikan has edged out the SPY benchmark by a little over one percentage point when annualized. Over this period the delta is nearly four (4) percentage points.
Millikan Risk Ratios
The current Jensen Alpha reading of 2.36 is quite strong. However, we need to clear October, November, and December before we are likely to see a positive slope for the Jensen.
Since August we lost a little ground to the SPY benchmark as shown by the decline in the Information Ratio. On an optimistic note, all risk metrics are positive for the Millikan.
Millikan Sector BPI Portfolio Review: 6 September 2024
Tweaking Sector BPI Plus Investing Model: Part II
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