Bethe Portfolio Review: 8 May 2026

American Goldfinches fighting over food.

Bethe is another portfolio built around the idea Financial Repression is in the future and needs to be faced and taken into account through portfolio construction.  In the second screenshot you will see the current portfolio beta is very low.  This simply means as currently constructed, the Bethe will move up or down approximately 1/3 as fast as the S&P 500.  If the market continue to climb upward this portfolio will lag the market.  Should we have a correction, the Bethe will not be hurt as significantly.

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Bethe Asset Allocation

Below are the Exchange Traded Funds (ETFs) representing the asset classes that make up the Bethe portfolio.  This portfolio covers stocks all over the globe.  It is well diversified.

Bethe Rebalancing Recommendations

I have a few limit orders in place to use up the $11,000 held in cash.  As with the Bohr updated yesterday I am not selling shares of SCHO at this time to bring all asset classes into balance.  I’m betting a better buying opportunity will show up sometime over the next 12 months.

As dividends come in I plan to use them to add a few shares here and there.  The market needs to drop at least 10% before I plan to sell off a major chunk of SCHO and build the assets back to target.

In addition to Financial Repression, the other dark financial cloud on the horizon is the extreme borrowing by the AI giants, but without revenue to support such borrowing.  Loans from several major banks are now being “offloaded” to shadow banks.  Sort of reminds one of the 2008 crash.  Some of these companies are too big to fail.  Ever heard that line before?

Bethe Performance Data

Since 12/31/2026 the Bethe lags its benchmark by a significant margin.  The current conservative approach is not working so long as U.S. Equities move up.  I am patiently waiting for the next correction.  That is when the Bethe will begin to shine.

If you have been following this blog for any period of time you know I am an advocate for both stock diversification as well as portfolio diversification.  Check out the Schrodinger and Copernicus for very different portfolio management styles.  If interest is high and you wish to investigate a more sophisticated investment model, look into the Sector BPI portfolios.  Use the search engine to find Carson, Franklin and McClintock as it works very well.

Bethe Risk Ratios

Now we come to risk measurements for the Bethe.  The slope of the Jensen Performance Index is positive.  That is the good news.  The bad news is the fact that the Information Ratio *IR) is moving in the wrong direction.  The IR is the closest measurement of how the portfolio is performing with respect to the benchmark.

My favorite of the four ratios is the Jensen as it comes closest to measuring how well the portfolio is performing based on how much risk one is taking with the selections of the securities.  Overall, this measurement is still positive (measured by the slope) for the year, but hovering in negative territory.

Financial Repression: Another Perspective

Financial Repression: Part IV

Financial Repression Portfolio: Part V