Gauss Portfolio Review: 28 April 2025

Respect for recent death of Pope Francis.

Gauss is one of the simplified Asset Allocation portfolios in that only four ETFs are used.  SHV is used as a holding basket when cash becomes available.  Due to the chaotic market I set TSLOs under VOO and SCHG as I assume the current administration will make several mistakes that will have a negative impact on both U.S. and International markets.  The Gauss may end up holding shares in only SCHD and SHV.  Capital preservation is important to the owner of the Gauss.

Gauss Security Holdings

Below are the current holdings for Gauss.  As readers can see, SHV is over-weighted.  Should either or both VOO and SCHG be sold, I will build SCHD up to the recommended percentage and pack the remaining cash into SHV.

Gauss Rebalancing Recommendations

At the moment I have a limit order in place to add more shares of SHV with the little bit of remaining cash.  This is a time to be patient to see what is going to happen with the Trump tariffs.  The next two months will be critical.  Also, the summer tends to be a slow time for stocks so concentrating on the lower volatile securities makes sense.

Gauss Performance Data

Since 12/31/2021 the Gauss has outperformed all benchmarks tracked here at ITA.  The Gauss is currently crushing AOR.

Gauss Risk Ratios

Losses over the last few months is having an impact on the Gauss.  The Jensen Alpha is well off its high from last fall.  The Jensen slope is negative and the results are not improving.  What this tells me is that the Gauss portfolio is losing ground to the AOR benchmark month after month.  We need to clear the low from last June to get a better handle on the direction of the Jensen Performance Index.

Comments are always welcome.

Returning To Investing Roots: 5 August 2024

“Sell In May And Go Away”