Franklin Sector BPI Update: January 28, 2026 | ITA Asset Management

As with the Carson reviewed earlier this week, there are no changes in store for the Franklin Sector BPI portfolio. There are no sectors in the oversold zone as we continue this bull market move. Sectors in the overbought zone (70% bullish and above) have Trailing Stop Loss Orders or are not part of the portfolio. The current plan is as stable as it is.

The nature of the Sector BPI investment model is designed to do well when we experience a recession. We guide underperforming sectors until they turn around. We then wait for such sectors to dip below their average and get close to the bottom in a normal cycle, and wait for the process to repeat. The core of the process is to take advantage of the normal market cycle that reverts to the mean.

With over three years of experience working with the Sector BPI model, we are starting to move out of the hypothesis phase of development. Consider the model as a semi-serious theory phase that still needs more testing and history. We still need to see the Carson, Franklin and McClintock undergo a major correction before we reach confidence conclusions. So far I am more than happy with the investment model.

Franklin Sector Holdings

Consumer Staples (VDC) was recently sold out of Franklin, leaving VAW, VCR, VIS, VNQ, and VOX as the remaining sector ETFs.

What to do with the $4,000 cash? I split the remaining money into limit orders for RSP and SHV. If US stocks were far off their highs, I’d be all about RSP. Now that the market is so high, I am cautious.

Franklin performance data

Over the past month, Franklin was one of the better performing portfolios. As of 12/31/2021, the Franklin has outperformed all benchmarks except the S&P 500 (SPY). Think of it as a tie to the broad market VTI.

Franklin Risk Ratios

On a risk-adjusted basis, the Franklin is performing exceptionally well. All current January values ​​are well higher than this time last year. This month’s stellar performance is reflected in the form of a spike in the Jensen Performance Index, also known as the Jensen Alpha.

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The Schrodinger and Einstein are the two portfolios that still need to be updated before we enter the month of February. Winter will soon be history in the Northwest.

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