Bethe Asset Allocation Portfolio Review: 5 January 2026

Amity Barn

During the month of December I made an effort to position all Asset Allocation portfolios to where they were set to operate without much change in 2026.  Bethe is one of those portfolios and as readers will see in a moment, the portfolio is positioned well to handle what is coming in 2026.  At least this is my best preparation for the owner of this account.

Bethe Asset Allocation Model

Below is the current asset allocation for the Bethe portfolio.  As currently positioned the portfolio will throw of a dividend of 3.0%.

Bethe Rebalancing Recommendations

How do I go about rebalancing the portfolio?

• The first goal is make sure asset class ETFs showing a Buy recommendation are in balance or have limit orders set to bring the number of shares close to target.  VEA is the one ETF (other than SHV) recommending a Buy and it is in balance.  As for asset classes, the portfolio is currently in good shape.
• The next move is to sell shares of SHV to raise cash so any asset class that is 5.0% below target can be elevated to a percentage where it is somewhere between 0.0% and -5.0%.  In other words, I want the asset class to be within the +/- 5.0% range. I am more concerned about an asset class below target vs. one above target.
• Should an asset class grow outside the 5.0% range on the upside, I plan to let it grow.  Perhaps I will sell shares, take the profits and reinvest them in asset classes that are below target.

Bethe Performance Data

Since 12/31/2021 the Bethe lags all possible benchmarks.  Withdrawals came at exactly the wrong time.  At this point it looks like the owner will not need to withdraw money, but instead will be adding cash each month.  This will definitely benefit the dollar-cost-averaging investing approach.

Bethe Risk Ratios

The Bethe is gradually making Jensen Alpha gains since the May low value.  Pay more attention to the December value as it is much too early January to think it was a nice pop since December of 2025.

The Information Ratio indicates the portfolio has been losing ground to the AOR benchmark for much of the 2025 year.  Should we have a market correction this year, the revised asset allocation should perform better than the old asset allocation.

Recession: Will Equities Drop In The Next 18 Months?

This Asset Allocation Model is very easy to duplicate.