Redwood structures
Bethe is the Asset Allocation portfolio up for review this morning. The last five weeks have not been what we wish for in portfolio performance and the weakness is showing up in this update of the Bethe. Unrest in the energy sector continues to keep the stock market off balance. Despite fourth quarter dividends 2024 ended on a weak note, but overall it was a very good year. We need to keep an eye on the long-term.
Bethe Asset Allocation Portfolio
Below is the current Asset Allocation layout for the Bethe. I’ve made some small adjustments in the ETF percentages. The Bethe is reaching a size where I want to keep the asset classes within plus or minus 0.5%. That is the goal over the first quarter of 2025.
Bethe Rebalancing Recommendations
The changes shown in 6th column from the right explain how I intend to bring the portfolio into balance. Limit orders on the high side are set for VTI, VB, VNQ, VO and VWO. Since cash is limited I will not be able to bring all asset classes below target into balance until more cash is raised.
Bethe Performance Data
Since 12/31/2021 the Bethe managed to edge out the AOR benchmark. However, it is below all the other four possible benchmarks and far off the SPY mark.
Bethe Risk Ratios
One bright note is that all risk measurements are better than they were in January of 2024. The Bethe has only been using the Asset Allocation model for 5.3 months so we have many months to go before we can draw any useful conclusions as to the viability of the AA model.
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