Einstein is up for review this morning. This portfolio sports a simplified asset allocation model in that it holds only four securities and one (SHV) is included primarily as an interest bearing cash holding tank.
Einstein Asset Allocation Holdings
The following asset allocation model is set up for a retiree. Younger folks will want to adjust the percentages allocated to the different securities or asset classes. Ask for help if needed. The bulk of the portfolio is allocated to VOO and SCHD. Overall, the Einstein will throw off nearly 3.0% in annual dividends. This percentage will decrease when VOO and SCHD are fully populated as the money will come from a higher interest generating security, SHV.
Einstein Rebalancing Recommendations
None of the three critical ETFs show up as a Buy. Therefore, SHV is well over the target. When any of the three equity ETFs show up as a Buy I will sell shares of SHV and begin to purchase shares in the asset class that shows up as a Buy.
No action is recommended at this time.
Einstein Performance Data
It is now catch-up time for the Einstein as it has fallen well below the AOR benchmark since 12/31/2021. It will take months if not years to close the gap on the benchmark. We go to the Risk Ratios (last screenshot) to see if any gains are showing up.
Einstein Risk Ratios
The first comparison is to check the March-April readings with the data from last April. Each risk ratio improved over this period. That is good news.
Since it is so early April, check the March data with the April 2024 data and we see improvement in all four areas. The slope of the Jensen Alpha is positive and we want to keep that trend going.
Comments are always welcome.
Once the Einstein is in balance the plan is to rarely sell shares as this portfolio needs to be efficiently tax managed.
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