The Einstein portfolio is likely the last account to be updated in August. This morning I sold shares of VOO and SCHD and invested in short-term treasuries, SHV. I also place a buy order for a few shares of SCHD at 5% below the current price. As dividends and new cash come in I will place limit orders for other equities (VOO for example) at prices well below the current price. Well below is defined as 10%, 15%, and 20% below the going price.
The Buffett Indicator and Shiller Ratio plus the impact of tariffs do not bode well for the market over the next few months. While I prefer not to time the market, I am doing just that with these moves to protect capital. October tends to be a poor month for the stock market so I am counting on history working on the side of the Einstein.
Einstein Current Holdings
The entire portfolio is currently invested in SHV. The current yield is not far off the rate of inflation so the Einstein is in a holding pattern.
Einstein Performance Data
Performance since 12/31/2021 has been lack luster to put it mildly. Costs to cover education came at the wrong time and as a result the Einstein suffered. Now it is a time to rebuild this account and that is the intention of the current owner.
Einstein Risk Ratios
If we look back to August of 2024, the Einstein made some progress with respect to each of the four risk ratios. With a portfolio beta of nearly zero, the Treynor Ratio is essentially meaningless at this point. Pay most attention to the Jensen Alpha and Information Ratio.
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