Bohr Portfolio Review: 17 October 2025

Another scarecrow.

With the U.S. Equities stock market at or near all-time highs, what to do with new cash or even how to work with a static portfolio is a question many investors are asking?  This week I was asked what is holding the Stock market at these high levels.  Not an easy question to answer.  There are at least two factors at work.  1) Artificial Intelligence (AI) is most likely one factor.  How this is working inside different businesses is unique to different industries.  I’ve seen it at work in the photographic world.  2) A second factor is financial behavior.  No one wants to be left behind in a rising market so more money is chasing higher prices.  At some point this will become a fools errand. The probability of a market correction or worse is very high.  With this in mind readers will see how I am working with the Bohr portfolio.

Readers need to know that the Bohr is one of the least profitable portfolios tracked here at ITA.  Poor performance is one reason why I move back to an Asset Allocation (AA) management approach.  The Bohr has been operating under the AA model for 6.5 months.

Bohr Security Holdings

Below are the current holdings for the Bohr.  This morning I added 20 shares of TLT which brings that asset into balance.  The asset allocation targets are listed in the third column from the left and the current % of Portfolio is positioned in the second column from the right.

Bohr Rebalancing Recommendation

Here is how I am handling the asset allocation model for the Bohr.

• If the recommendation is to Hold, I do nothing.  If there is an over abundance of cash I will bring the asset up to target.  Readers can see that this morning I am not making any changes to VOO, VEA or VWO as it would require selling more shares of SHV to raise cash.
• If the recommendation is Sell I do nothing.  I don’t plan to sell and incur a taxable event with the assets other than SHV.
• Now we come to the Buy recommendations.  TLT, BND, and BNDX call for a Buy.  There was insufficient cash to bring them up to target so I sold shares of SHV to raise sufficient cash.  As mentioned above, I purchased 20 shares of TLT to bring that ETF up to target.  Limit orders are in place to purchase 135 shares of BND and 190 shares of BNDX.  The limit orders were set a few pennies below the current price.

Bohr Performance Data

Since 12/31/2021 the Bohr is far behind any of the potential benchmarks.  The owner needed money several months ago for economic reasons and as a result the Bohr did not participate in the recent bull market.  This portfolio is now in a rebuilding phase.

Bohr Risk Ratios

Overall, the Bohr is behind where it was a year ago.  Checking the Jensen Alpha, the current value of -4.15 is slightly above where it was last June and July.  It is much too early to see how the AA model is working.

The Information Ratio tells us the portfolio is not keeping pace with the AOR benchmark and likely won’t so long as the portfolio is carrying such a high percentage in SHV.

Rather than chase the AOR benchmark, I am taking a cautious approach so as to preserve capital.  I anticipate 2026 to be a rocky road for the U.S. Equities market.

Comments are always welcome.