Einstein Portfolio Review: 25 May 2023

Iris

Einstein is the Relative Security or Relative Momentum portfolio up for review this morning.  For those using the Kipling spreadsheet, Yahoo changed something so the descriptions are not coming through.  The prices for the Einstein are current through the close yesterday (5/24/2023).  Since descriptions are missing I did not include the investment quiver.  Rather, I am beginning with the security recommendations.

Einstein Security Recommendations

To go over the Kipling settings from left to right, I have the Target Filter (VTI) turned on.  I am looking for ETFs that are outperforming VTI.  The dark red arrow points to a one-year look-back period.  The black arrow indicates only five securities are recommended at any one time.  The dark blue arrow points to the LRPC investing model.

The three recommended assets for purchase are:  VTI, QQQ, and QUAL.  This data tells us that only QQQ and QUAL are outperforming VTI.  If we were near a market bottom I would turn off the Target Filter.  Now I’m taking a cautious view.

Einstein Manual Risk Adjustments

In the following worksheet, VOO is also recommended for holding more shares.  Sell limit orders are in place to sell all ETFs recommended as a Sell.

Buy orders are in for VOO, VTI, QQQ, and QUAL.  We need to sell some shares before money is available to fill all the Buy orders.

Einstein Performance Data

Over nearly 17 months the Einstein is performing within striking distance of the S&P 500 (SPY).  The large cash holding is there as the owner needs available cash for other purposes than investing.

Einstein Risk Ratios

Despite the large cash holding, the Einstein carries some risk as we see by the negative Jensen Performance Index (-1.85).

Right now the Buy limit orders are placed well below the current prices.  Once the debt limit crisis is over I’ll tighten up the limit orders as I expect the market will move up for a short period once the “pressure valve” blows off.

Einstein Interim Update: 5 February 2022