Gauss Asset Allocation Portfolio Review: 31 July 2025

“Old” Pier

July ends with the update of another “mini” asset allocation portfolio.  Gauss brings July to a close.  As with similar portfolio structures I am tilting toward income vs. growth until the political environment shows some stability.  If and when we observe market weakness, at that time I will make an effort to slowly move back into the equities market.  Readers will be made aware of this when it happens.

Gauss Asset Allocation Makeup

As one sees in the pie chart below, approximately 50% of the Gauss is devoted to income while the other 50% is growth oriented.  The Gauss is one of several simple asset allocation portfolios holding only four assets.

A limit order is in place to purchase a few shares of SCHG.  This will use up the available cash.

Gauss Performance Data

Since 12/31/2025 the Gauss has performed quite well by outperforming all but the S&P 500 (SPY).  At this point the Gauss is doubling the AOR benchmark.

Gauss Risk Ratios

Nearly all four risk ratios are above where they were a year ago.  Encouraging is the fact that the Jensen Alpha has slowly been improving over the past five months.

The Information Ratio is a good head to head measurement with the benchmark and that value is also improving.

Buffett Indicator & Shiller PE Ratio

Little has changed in either the Buffett Indicator or Shiller PE Ratio.  Both show this stock market to be over valued.  These are additional reasons while I am taking a cautious tack with portfolio management.