Huygens is an asset allocation style portfolio set up to handle, as well as possible, a potential market correction. As currently constructed the dividend rate is very close to the rate of inflation. Huygens is built around the ideas laid out in this blog post.
Huygens Security Holdings
In addition to the recommended recession portfolio, Huygens holds SCHD, SCHP, and SCHO. All are dividend paying ETFs.
Huygens Rebalancing Recommendations
The target goal is to keep each asset class or ETF within one percentage point of its target. The Huygens is in balance as of 9/22/2026. When updated in October should an ETF drop more than one percentage point below target I will use dividends to bring that ETF back into balance. I’ll not worry about securities moving above the target percentage.
Huygens Performance Data
Since 12/31/2021 the Huygens is behind the AOR benchmark. When the next correction arrives the Huygens should close the gap on all tracked benchmarks.
I suspect the Other section of the pie chart is an inflation protection ETF.
Huygens Risk Ratios
Over the past year the Huygens increased in value, but is not keeping pace with the benchmark. I expect to see this trend change sometime over the next 12 to 18 months.
Risk values to watch are the Jensen Alpha and Information Ratio.
Financial Repression Portfolio from ChatGPT
Financial Repression Portfolio Update From ChatGPT
Discover more from ITA Wealth Management
Subscribe to get the latest posts sent to your email.
Leave a Comment or Question