Cobra Replica
Instead of a complete review of the Gauss portfolio, I am laying out a new and expanded asset allocation model for this account. This new asset allocation plan is global compared to the mini-asset allocation model currently in place. Check the Gauss portfolio at the bottom of this post to compare the asset allocations.
This new model for the Gauss provides additional diversification and is slightly less dependent on U.S. Equities.
Gauss Revised Asset Allocation Model
The Gauss will continue to be equity oriented. BND and SHV will provide the 20% of low volatile holdings. VEA and VWO provide exposure to international equities.
Gauss Rebalancing Recommendations
How will the rebalancing take place? When the Gauss comes up for a full review I will sell shares of SHV if buying opportunities are still recommended. Based on recommendations from the Kipling spreadsheet, small-cap value (VB) and bonds (BND) are calling for a Buy. VOO is out of balance to the high side and I have a TSLO already in place to sell shares of VOO.
Once a position is in place the goal is to maintain that allocation unless the recommended percentage moves above or below the target by 5%. I will likely lower this to 3% for a low volatile ETF such as BND.
The following Gauss update provides a reference as to what the prior portfolio looked like. As readers can see, I am expanding the asset allocation model.
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