Halloween in Canby
Bethe is the portfolio up for review this morning. This portfolio is constructed primarily of equity ETFs and as such is taking a hit this morning. Is this the draw-down we have expected for months or only a momentary pause? To be determined over the next several months. As readers will see, I am taking a cautious approach with Bethe.
Bethe Asset Allocation Model
Below is the current asset allocation makeup of the Bethe portfolio. SHV is the dominate holding and I added seven (7) more shares this morning. As you see in the second screen only SHV is recommended as a Buy. Therefore, I am holding off adding to the current equity ETFs.
Bethe Rebalancing Recommendations
The Risk Adjustment worksheet from the Kipling spreadsheet is only recommending SHV for purchase. The Bethe is overloaded with this ETF – a good place to be if the market continues to slide downward.
As we approach 2026 the goal is to reduce portfolio churning and only add to equities when a Buy shows up. Right now all new money and dividends are plowed back into SHV.
Bethe Performance Data
Since 12/31/2021 the Bethe is lagging the AOR benchmark by a small percentage. A few days such as this one and Bethe will overtake AOR.
Bethe Risk Ratios
Both the Jensen and Information Ratios show the Bethe is losing ground to the AOR benchmark. It is too early in November to pay much attention to those values so concentrate on the October numbers.
Buffett Indicator & Shiller PE Ratio
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