Millikan Sector BPI Portfolio Review: 18 October 2023

Painted Hills

Millikan is another Sector BPI Plus portfolio that adding evidence to the positive benefits of this investing model.  With the number of portfolios using the sector model, and reviewing these portfolios on different days, the luck-of-the-review-day is minimized.

Before the end of this year I plan to add the Kepler and Pauling portfolios, two poor performers, to the Sector BPI Plus investment stable.

Millikan Investment Quiver and Holdings

Below is the investment quiver and current holdings in the Millikan.  The percentages for the sector ETFs VAW down through VPU are calculated based on three years of volatility.  When a sector ETF reaches the oversold zone based on Bullish Percent Indicator data, we invest a percentage of the total portfolio in that ETF.  For example, the goal is to invest at least 5.6% in Consumer Staples (VDC).  In the second column from the right edge you can see that the Millikan holds 11.7% or more than necessary.  For Materials (VAW) the recommended percentage is 9.1% and the Millikan is right on target.

Millikan Security Recommendations

Below is the security recommendation worksheet that comes right out of the Kipling spreadsheet.  If one were to follow the BHS model and the 60- and 100-trading days look-back combination we would be out of the market.  However, the Sector BPI model has five of the eleven sectors currently in the oversold zone.  Those sectors are: Discretionary, Staples, Health, Real Estate and Utilities.  The Millikan holds shares in all five sectors plus sectors recommended in the past.

Millikan Manual Risk Adjustments

No further adjustments are required.  As the portfolio currently stands, everything is fine.

Millikan Performance Data

Over the past 22 months the Millikan holds a comfortable four (4) percentage point lead on the SPY and a much larger margin on the other five potential benchmarks.

Millikan Risk Ratios

Since September the Jensen Alpha improved and the slope (0.66) is quite strong.

Millikan Portfolio Report

Including a portfolio report is relatively new.  What I’ve done is to include the eleven sectors and the four U.S. Equity options (ESGV, SPY, VOO, and VTI) for the past 21.5 months.  Readers can see which securities contributed and which detracted from the overall performance.

Yesterday I purchased one share of VIS as that is the only sector ETF that has not been part of the Millikan since early in 2022.

As these sector portfolios build more history this table will become even more useful.  When I have more data I can merge all the sector portfolios and provide a combined performance report.  This information comes from the commercial software program, Investment Account Manager.

Tweaking Sector BPI Plus Model: 20 May 2023

Millikan Sector BPI Update: 20 July 2023

Gauss Portfolio Update: 19 March 2023