Kalispell barn in Montana
After updating the BPI data earlier this morning, only Energy remains in the Buy column. Real Estate just move above the 30% bullish line. Tomorrow I’ll post the latest BPI data which will provide guidance for Sector BPI portfolios next week. For now, the Millikan has nearly a full complement of Energy (VDE) and a respectable percentage in Real Estate (VNQ).
Holdings in VFH and VAW are from past recommendations and I am just waiting for those sectors to rise into the 70% or higher “Sell” zone.
Millikan Security Recommendations
No changes are anticipated for the Millikan unless new money is added and the percentages change. For example, were new money added to the Millikan a few more shares of VDE would be required in order to maintain a 25% of the total portfolio. For now the Millikan is set to run until the next update.
The following worksheet is only used if there is cash available after filling the sector requirements.
Millikan Performance Data
Over the past 17 months the Millikan is matching the Internal Rate of Return (IRR) of the S&P 500 (SPY). The goal is to continue to match or best this benchmark.
Millikan Risk Ratios
The Millikan has only been using the Sector BPI model for a few months. The high point was reached in April and has declined since. The hope is that the last “tweak” of the model will return the Jensen Alpha to something higher than a value of 1.00.
Also keep an eye on the Information Ratio as that value indicates whether or not the portfolio is outperforming the benchmark and even more importantly, what is the trend?
Tweaking Sector BPI Plus Model: 20 May 2023
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