Millikan Sector BPI Portfolio Review: 8 March 2024

Sidewalk leads to underground Chinatown in Pendleton, Oregon

I’d compare stock pickers to astrologers, but I don’t want to bad-mouth astrologers. – Professor Eugene F. Fama

Millikan is the Sector BPI portfolio scheduled for review this morning.  With a modest percentage in cash and the investment quiver honed to a minimum this portfolio is in an excellent operational position for the coming months.

Millikan Investment Quiver and Holdings

Below is the investment quiver and current holdings for the Millikan.  Other than shard holdings in Energy, Financials, and Information Technology, the Millikan holds sector positions in Consumer Staples and Utilities.  This would leave the portfolio manager with an excessive amount of cash where it not for investing in VTI and VOO.  Adding U.S. Equity ETFs to the investment quiver is one of the major patches to the original Sector BPI model.

If capital preservation is vital, place TSLOs under VTI and VOO.  Do nothing with the sector ETFs as we use data from the Bullish Percent Indicator spreadsheet for sector investing guidance.

No sectors are positioned in the oversold zone so we will not be purchasing any sector ETFs.  All overbought sectors have been sold out of the Millikan.

Millikan Manual Risk Adjustments

The Manual Risk Adjustments worksheet is not recommending any new purchases.  However, I am over-riding this worksheet by placing limit orders to pick up a few shares of VOO.

Millikan Performance Data

Since 12/31/2021 the Millikan has outperformed the SPY benchmark.  The delta is not great, but this portfolio is operating on the positive side of the benchmark.  The next closest potential benchmark to SPY (S&P 500) is Vanguard’s Total Market ETF, VTI.

Millikan Risk Ratios

Over the last year the Jensen is flat.  With a current value of 1.38, that flat slope is operating on the positive side of the baseline.

Based on the risk measurements the Millikan is in very good shape.

Millikan Sector Performance Report

While the above performance data begins on 12/31/2021 the Millikan has not been using the Sector BPI model for over two years.  Instead, we go back to 11/30/2022 or 12/01/2022 for the Sector BPI launch date.

The Internal Rate of Return (IRR) for this shorter period shows the Millikan grew at a rate of 43.6% while the SPY benchmark increased at a rate of 27.1%.  This is an excellent margin and it speaks well for the Sector BPI model.

Millikan Sector BPI Update: 20 July 2023

If this model is of interest, don’t miss out on the recent Seeking Alpha article.