Bethe Portfolio Review: 10 March 2026

1930s Doll

Bethe is the conservative asset allocation portfolio scheduled for review today.  As I look over the current holdings, I may make a change in the future.  One that merits change is to sell QUAL and replace it with SCHD.  This switch would increase income and lower the overall portfolio beta.

While the war in Iran is disrupting the stock market, the fundamentals are of more concern.  The U.S stock market is overvalued (based on Buffett Indicator and Shiller CAPE Ratio) so there will eventually be some sort of pullback.

Bethe Asset Allocation Holdings

Below are the current holdings in the Bethe.  As mentioned above, I will likely move QUAL out of the portfolio and will reduce the percentage allocated to RSP.

Bethe Rebalancing Recommendations

Limit orders are in place as shown below.  The order for shares of RSP is approximately 10% below the current price.  A correction of at least 10% is expected over the next few months.

No significant changes are anticipated until the April review, and then the adjustments will be minor when it comes to dollar amounts.

Bethe Performance Data

While the Bethe has not kept pace with the AOR benchmark since 12/31/2021, it is holding its own in this uncertain market.

Bethe Risk Ratios

Only the Information Ratio is lower that it was a year ago.  One positive piece of data is the slope of the Jensen Alpha (0.07).  Yes, the value is barely positive, but it should improve over the next few months.

Comments are always welcome.