Einstein Asset Allocation Portfolio Update: 11 March 2025

Passenger car ready for restoration.

Einstein is one of the lower performing portfolios, one of the reasons for moving the management style over to the Asset Allocation model.  We are coming up on one year of this management model change.  The improvement is gradual, but visible as readers will see from the following update.

Einstein Asset Allocation Holdings

Below are the current holdings for the Einstein.  Despite the recent drop in equities, the Einstein is still over-weighted in most of the equity holdings and under-weighted in bonds and treasuries.

Einstein Rebalancing Recommendations

There is insufficient cash to make any new additions to the Einstein.  If cash were available I would be adding shares of BND as it is the only ETF (asset class) below target with a Buy recommendation.  Instead of working to bring all asset classes into balance, I intend to pay more attention to the recommendations.

In the future I plan to follow the Buy-Hold-Sell recommendations to rebalance only those securities that are under target.  This will become clear when specific examples are explained in future portfolio reviews.

Einstein Performance Data

Since 12/31/2021 the Einstein has lagged the AOR benchmark as well as all other potential benchmarks.

Einstein Risk Ratios

The Asset Allocation investing model appears to be working as planned if one compares the recent March data with the May data of 2024.  In 1.5 months this portfolio will “celebrate” one year of AA modeling.

Be sure to check out Rob Berger’s YouTube videos as recommended in yesterday’s blog post.