Einstein Portfolio Update: 8 January 2026

Long time pet of good friend.

Einstein is the portfolio up for review this morning.  Einstein is either the poorest performer here at ITA or one of the poorest.  Without excess excuses there is a reason for not doing well.  This portfolio has been the source for educational funding by the owner.  As a result, dollars were pulled out at tuition time and those withdrawals definitely had an impact on performance.  The same withdrawal timing impacted one or two other portfolios tracked here on this blog.

The lesson to be learned is that a retirement portfolio, at least historically speaking, is to dollar-cost-average on a regular basis and never withdrawal money unless it is a dire emergency.  Pulling money out of a portfolio at the wrong time can kill performance.

I’m hoping there are no future withdrawals from the Einstein, but I can’t be sure.

Einstein Asset Allocation Model

Below is the revised asset allocation model for the Einstein.  Note that VOO is no longer part of the portfolio.  I sold VOO in order to reduce excessive exposure to the mega-7 to 10 stocks.  We still have some exposure with RSP, an equal-weight S&P 500 ETF.

The revised asset allocation should provide a tad more resistance to a correction or recession.  I am anticipating a volatile year based on the behavior of an erratic administration.  Neither party seems overly concerned about the mounting national debt and the rising income inequality problem.

Einstein Rebalancing Recommendations

The Einstein is coming into balance.  There are a few asset classes that are still below target, but we are getting there.  Buy limit orders are in place for VEA, QUAL, USMV, and RSP.  These are all equity ETFs with VEA as the developed international security.

Einstein Performance Data

Here is the bad news.  Since 12/31/2021 the Einstein has lagged all possible benchmarks by a wide margin.  It is unlikely the Einstein will bridge this gap.

Einstein Risk Ratios

Other than a few erratic moves by Treynor, the other three risk measurements have been quite dormant over the past year.

For all ITA portfolios, watch the movement of the Jensen in 2026.  One goal for the Einstein is to turn the slope of the Jensen positive.

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