Bethe Asset Allocation Portfolio Review: 6 November 2024

Willamette Falls*

Bethe is another Asset Allocation portfolio that is approaching a balanced state.  Since there is a 90% overlap in stocks held in VTI and VOO, I placed a Trailing Stop Loss Order of 3% for VTI.  Inflation is currently not a problem so a TSLO of 1% is in place for TIP.  Once cash available from those two sales I will be able to bring several of the other assets in balance.  Check out the second screenshot for that information.

Bethe Asset Allocation Portfolio

Below is the current asset distribution across a wide variety of ETFs.  The Bethe is approaching a size were it is a little easier to keep the different asset classes in balance.  The goal is to see each ETF representing a particular asset class within + or- 0.5% of the recommended percentage.

When next reviewed I need to reallocate the 12% assigned to VTI and TIP to other asset classes.

Bethe Rebalancing Recommendations

Below is the beginning of the rebalancing process.  Not much cash is currently available so rebuilding the portfolio is limited.  The new allocations assume cash is available from the sale of VTI and TIP.

Bethe Portfolio Performance

Since 12/31/2024 the Bethe is managing to outperform the AOR benchmark, but cannot keep pace with the SPY.  Portfolios holding asset classes other than U.S. Equities have a difficult time keeping pace with the S&P 500 index.  Young investors with 25 to 40 years of saving time would do well to just save in an index fund such as VOO or VTI.

Bethe Risk Ratios

For much of 2024 the Bethe was in negative territory when risk entered the equation.  Since July the Jensen Alpha has been positive, a very good sign for this account.

One goal of the Bethe is to maintain a positive slope for the Jensen.  This goal will be difficult to meet unless the market keeps rising.

• The Willamette Falls photo was made with an iPhone and ReeXpose software app.  No special filter is required.  It is a 30 second exposure and did not require a neutral density filter as that is all accomplished within the ReeXpose software.