Bethe Portfolio Review: 8 December 2025

Street Photo

Bethe is the next asset allocation portfolio up for review.  Note the new array of assets as this change is designed to create a “recession resistant” portfolio by increasing lower volatile Exchange Traded Funds (ETFs) and to increase the monthly yield.

Bethe Asset Allocation Setup

Below is the revised asset allocation makeup for the Bethe portfolio.  Once all assets are close to target the annualized yield should come close to 3.0%.

Bethe Rebalancing Recommendations

As the current asset allocation stands, slightly over 50% of the portfolio is designed to generate income.  This will change once all asset classes are close to the target percentages.

Available cash is first used to bring ETFs with a Buy signal up to the target percentages.  Limit orders are in place to purchase more shares of VYM, VEA, and QUAL.  Each month assets most below target will receive buy orders, financed by new deposits and dividends.

Bethe Performance Data

Since 12/31/2021 the Bethe lags the AOR benchmark by approximately 1.5% annualized.  This gap will close if we see significant market draw downs.  There is a high probability this will occur before we see 2027.  Should equities climb higher expect the Bethe to continually lag the AOR benchmark.

Bethe Risk Ratios

Over this past year the risk ratios did not keep pace when AOR is used as the benchmark.  The new asset allocation model will address this problem so keep watch over the next year.

Cash was required of this portfolio this past year so we are in a rebuilding process with the Bethe.

Recession: Will Equities Drop In The Next 18 Months?