Einstein Portfolio Review: 17 June 2026

Alpenrose Velodrome Warmup.

Einstein is the “Financial Repression” portfolio up for review this morning.  If you are prevented from reading this blog post, register as a Guest (free) and wait for me to upgrade your Guest membership to Platinum.  The blog is free to all readers.

And now to the analysis of this portfolio that has been a disappointment when it comes to performance since 12/31/2021.  One critical lesson one learns from the Einstein portfolio is that withdrawals definitely impact overall performance.  That is what happened to this portfolio as well as the Kepler portfolio.

How to proceed going forward.  The owner is attempting to rebuild the Einstein while keeping in mind an overvalued market with a correction and possible recession in the near future.  I mentioned this is a “Financial Repression” portfolio.  Search that term on this blog and on the Internet if you are unsure of its meaning.

Einstein Security Holdings

The asset allocation may look a tad different for the Einstein.  It is definitely not an equity driven portfolio.  This portfolio is set up to resist taking a huge hit if we see a market correction (draw-down of 10% or more) or even worse.

When fully populated this portfolio should generate an income in excess of 3.0%.

Einstein Rebalancing Recommendations

Initially I brought each ETF or asset class within 5.0% of the target percentage.  When the second quarter dividends are in, plus any new cash deposits, I hope to bring all asset classes within 4.0% of target.  In August I hope to have all asset classes within 3.0% and each of the following reviews sell sufficient shares of SCHO to close the gap on the target percentage by one percentage point.  When all asset classes are in balance there should be sufficient dividends to keep all asset classes within +/-3.0% points of the target percentages.

Limit orders are in place to add shares of VTI, VIG, IGF and AVES.

Einstein Performance Data

Since 12/31/2021 the Einstein has lagged all tracked benchmarks by a wide percentage.  The gap is not likely to be closed unless we see a major recession.

Einstein Risk Ratios

How well has the Einstein performed over this past year.  Based on the Jensen Alpha we see slight improvement as the slope of the Jensen is managing to eke out a positive value.

The Treynor Ratio took a tumble as low volatile shares of SCHO were sold and invested in higher volatile ETFs.  When the IRR is negative, moving to a higher portfolio beta drives the Treynor down.

Comments and Questions are always welcome.