Millikan is the Sector BPI portfolio up for review this morning. Based on the latest Bullish Percent Indicator data, only Utilities is over-sold so it is essential that sector be fully populated. As readers will see in a moment Utilities holds the recommended 15% of the total portfolio.
Millikan Sector Investment Quiver
In the investment quiver shown below the Millikan still holds over $11,000 in cash. The plan is to invest most of that money in either SHY or SHV. SHV is the more stable or lower volatile ETF so it seems to be the better choice if the money will soon be used to pick up shares of another sector, should one dip into the over-sold zone.
Millikan Performance Data
Over the past 14 plus months the Millikan just edged out the AOA as well as all the other possible benchmarks I track using the Investment Account Manager software. While the Millikan is in the red, it is still meeting its goals.
This is going to be a critical year for the Sector BPI model so continue to keep an eye on these four portfolios. They are: Carson, Gauss, Franklin and Millikan.
Millikan Risk Ratios
Two of the more important risk measurements are the Jensen and Information Ratios. The Information Ratio dipped over the last few days indicating the Millikan is falling with respect to the AOA benchmark. On the other hand, Jensen’s Alpha improved slightly indicating the portfolio is improving when risk is taken into account. Ideally, one would like to see both measurements moving upward.
The Treynor dipped significantly due to a very low portfolio beta. Pay less attention to this risk ratio.
New Carson Launched: 4 November 2022
Portfolio Management In A Volatile and Bearish Market
Investment Policy Statement: February 2022
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Lowell,
I missed VHT on Friday but decided to take positions in 3 portfolios this morning. The price was up 0.125% so I decided to take a chance using smaller %’s then those recommended by the Max AA column. Right now I’m more interested in whether the buy sell signals are yielding a positive return. I’m now positioned in VPU, VDE and VHT in my sector portfolio portion. As reported earlier I only have one negative trade result so far and that was a very small loss. Overall gain is about 7%. Earliest trades were from late September.
Bob W.
Bob W.,
Thanks for reporting in. This positive news may encourage other readers to being experimenting with a small Sector BPI portfolio.
I’m going to work on updating Carson this morning.
Lowell