Gauss Portfolio Review: 21 July 2026

Spokane Bike Club crossing the Willamette River on the Canby Ferry.

Gauss is another ITA portfolio waiting for a major market correction.  As currently structured the income is nearly 3.4% and those dividends will be used judiciously to bring asset classes well below target up closer to target.  There is no hurry to this process until we see a market correction.  A market correction is defined as a 10% reversal from the market high.  I’ve seen projections the NASDAQ could crater as much as 70%.

Gauss Security Holdings

This morning I lowered exposure to Developed International Equities (VEA) and sold all but one share of VTI.  As portfolios come up for review I will be lowering exposure to overbought U.S. Equities.

I added shares of SCHO so money is not sitting idle in a low interest bearing money market.  The nearly $3,000 remaining is tied up in limit orders for several ETFs identified in the following screenshot.

Gauss Rebalancing Recommendations

Limit orders are in place to purchase shares of JEPI, SCHD, SCHP, SPLV, and VNQ.  Limit prices are approximately 5% to 10% below the current price.

Gauss Performance Data

Since 12/31/2021 the Gauss is besting the AOR benchmark, but well below SPY or the S&P 500.

Gauss Risk Ratios

We now have over one year of “recession resistance” experience with the Gauss.  All risk ratios with exception of the very important Information Ratio are well above where they were a year ago.  Particularly significant is the improving Jensen Performance Index.  The positive slope indicates this investing model is adding value to the Gauss.