Cruise In Car
Bohr is an Asset Allocation portfolio that is in the rebuilding phase as the owner needed cash for personal reasons over this past year. Now that the market is quite high and considered overvalued based on the Shiller and Buffett indicators, excess cash is invested in a short-term treasury. Another 50 shares were purchased this morning as this post was being written.
Bohr Asset Allocation
Below is the asset allocation when I first started writing. Another 50 shares of SHV were purchased this morning bringing the cash down below $100.
Bohr Rebalancing Recommendations
The 50 shares of SHV, recommended below, were added this morning. The portfolio is fully invested. Should we see a correction or the market drop 10% or more, I will sell shares of SHV and build up VOO if the Kipling spreadsheet recommends a Buy. Right now all equity oriented ETF call for a Hold.
Bohr Performance Data
Since 12/31/2021 the Bohr is woefully behind all possible benchmarks. This is an example of what happens when money is withdrawn at the wrong time.
Bohr Risk Ratios
Based on all for risk ratios, the Bohr portfolio slipped this past year when it comes to return and risk. Checking the Jensen Alpha, we see a smidgen of improvement over the summer months.
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In case you do not check in to read the Forum, here is information on the Buffett Indicator.
“This ratio fluctuates over time since the value of the stock market can be very volatile, but GDP tends to grow much more predictably. The current ratio of 217% is approximately 68.63% (or about 2.2 standard deviations) above the historical trend line, suggesting that the stock market is Strongly Overvalued relative to GDP.”
Lowell