Falls in Yellowstone National Park.
We are fast closing out 2024. The year is ending in a whimper as the Santa Claus rally did not materialize. At least not for the ITA portfolios.
The Millikan is one Sector BPI portfolio to watch as the Internal Rate of Return (IRR) nearly matches the SPY benchmark IRR. The Millikan currently holds three sectors and they are: Energy, Health, and Materials. In order to purchase shares of Health and Materials this week I needed to sell shares of VTI and a few shares from the VOO holding. The Sector BPI model is betting that these sector additions will outperform U.S. Equities (VOO) until one or more of these sectors reaches the overbought zone. Otherwise it would make more sense to continue to hold on to shares of VTI and VOO.
The question over the next few months is – Will sector ETFs, VDE, VAW, and VHT outperform VOO and VTI?
Millikan Sector BPI Portfolio
Below is the current makeup of the Millikan portfolio. VAW, VDE, and VHT are all within 0.5% of the recommended target.
Millikan Portfolio Performance
Since 12/31/2021 the Millikan managed to eek out a small margin over the SPY benchmark. This is the competitive race to monitor over the next few months. The other five potential benchmarks have not kept pace with the Millikan.
Millikan Risk Ratios
The recent U.S. Equities swoon shows up in the decline of the Jensen Alpha from November to December. There are projections that the Trump Administration will be good for equities. This seems unlikely considering the U.S. Stock Market is coming off two exceptional years of growth. The stock market is due for a breather so take a deep breath during 2025. We possibly will see a few good buying opportunities – assuming cash is available.
Millikan Sector BPI Portfolio Review: 10 May 2024
Millikan Sector BPI Portfolio Review: 6 September 2024
Tweaking Sector BPI Plus Investing Model: Part II
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