Millikan Sector BPI Portfolio Review: 17 May 2024

Kipling

Millikan is the Sector BPI portfolio up for review.  Each update lays down additional history as to the viability of the Sector BPI investing model.  As a reader be sure to check out the bottom screenshot to see how the Millikan is contributing to this unique investing model.

Millikan Security Holdings

Below is the investment quiver and current holdings in the Millikan portfolio.  With over $15,000 in cash we need to give thought as to how this money will be put to use or held back in a money market as we wait for better buying opportunities.

Millikan Manual Risk Adjustments

The Buy-Hold-Sell investing system with the default look-back periods calls for a Hold for both VTI and VOO.  No sectors are oversold so no purchase orders are set for any of the eleven sectors.

Moments ago I updated the BPI spreadsheet and these are the sectors that are overbought:  Financial, Industrial, Materials, Utilities, and Real Estate.  A Trailing Stop Loss Order (TSLO) is set for VPU.

This morning I received a message from Schwab that they will not clear TSLOs prior to dividend time whereas TD Ameritrade automatically canceled any TSLOs before dividends were declared.  With Schwab one must go in and delete all TSLOs manually to avoid a security being sold due to the adjusted price to account for the dividend.

VPU generates a 3.27% annually.  I think one can let the 3% TSLO ride as the price adjustment should be less than one percentage point.  At least I don’t plan to make any changes prior to the end of the second quarter.  If dividend adjustments begin to create a sell problem for TSLOs then manual cancellations may be necessary.

Millikan Performance Data

Since 12/31/2021 the Millikan has outperforming the SPY benchmark by over one percentage point annualized.  The margin is even much greater for AOA, AOR, and VT.

Millikan Risk Ratios

The next goal for the Millikan is to flip the slope of the Jensen from negative to positive.

Overall, the Millikan is performing very well despite holding nearly 25% in cash.

Millikan Sector Portfolio Report

When we extract the ETFs used to populate the Millikan, since 12/01/2022 the Sector BPI model has outperformed the SPY benchmark by a wide margin.

The portfolio also topped the high flying NASDAQ.  Confidence in the Sector BPI investing model continues to build as we are now looking back on 1.5 years of data.

Millikan Sector BPI Portfolio Review: 10 May 2024

Tweaking Sector BPI Plus Investing Model: Part II