Burlingame Fall Colors
Bethe is scheduled for an update this morning. I may have mentioned in a comment that I plan to simplify the Asset Allocation portfolios. More on this in a bit.
If you Google building a portfolio using Asset Allocation (AA) you will find a wide array of suggestions. Many are quite useful so one can learn a bit from each Youtube you view. I’ve set up the AA portfolios for maximum diversity for both stocks and bonds as well as domestic securities and international securities.
Bethe Portfolio
Below is the current makeup of the Bethe portfolio. I have Trailing Stop Loss Orders (TSLOs) set for VTI and TIP. Over 90% of the stocks in VTI are found in VOO. The other 10% are found in either VO or VB. Once VTI and TIP are sold I will adjust the AA percentages.
Bethe Rebalancing Recommendations
To rebalance I have limit orders set for BND, BNDX, and VEA. Once VTI and TIP are sold the money can be used to bring VEA closer to the recommended percentage.
Bethe Performance Data
Keep in mind the Bethe AA model was only launched in early August of 2024 so has been operational a very short period of time. Since 12/31/2021 the Bethe outperformed the AOR benchmark by a sizable percentage. The margin is more than double over this period.
Bethe Risk Ratios
Since the Bethe has been using AA for such a short period I focus on the growth or decline of the Jensen Alpha. It is very encouraging to see the Jensen rise from last August, and particularly over these past two weeks. I was not sure an AA style portfolio would be able to keep up with a surging S&P 500 index.
Share the https://itawealth.com link with family and friends. This is a Do It Yourself (DIY) educational site. DIY rather than pay an advisor to do relatively the same thing.
Another suggestion is to purchase the Investment Account Manager software and track your investments to see if the manager you are paying is adding alpha to the portfolio. I posit you will save the cost of the software by saving on management fees. Note that it is extremely difficult for a manager to outperform the S&P 500 or what VOO can do for you. Just check the Copernicus and I doubt many professional money manager can match that record. The same goes for the Schrodinger portfolio.
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I should have mentioned in the blog post that I set a TSLO of 3% for VTI and 1% for TIP.
Lowell
LOWELL
Why are you selling TIP? It looks like it is under allocated per your worksheet.
Bob
Bob P.,
I don’t see inflation to be much of a problem and TIP adds little value to a portfolio when inflation is under control. I anticipate I can gain more growth with the other asset classes while not significantly increasing the risk.
Lowell