Huygens Portfolio Review: 4 May 2026

Plants

Huygens is the portfolio up for review today and in this portfolio I am rebalancing the account to counter the high probability the FED, with cooperation from the government, will strive to inflate their way out of the 39 trillion (and growing) national debt.

The basic principle of spending less than you earn is ever present.  Eliminate credit card debt and minimize cash in checking accounts where the interest rate is next to nothing and buying power is lost due to inflation.  We do need to be thankful inflation is not even close to what it was back in the early 1980s.

Huygens Security Holdings

Take a close look at the holdings in the Huygens.  While to portfolio is not even close to being in balance, that will happen over the coming months.  Holding such a large percentage in SCHO (replaced SHV) is essentially a cash position while waiting for better buying opportunities.

Huygens Rebalancing Recommendations

A few limit orders are in place to add a more shares as shown in the 6th column from the right.

The beta of this portfolio is very low so it is almost immune to a major draw-down.  The Huygens portfolio welcomes a major correction.

Huygens Performance Data

Since 12/31/2021 the Huygens lags the AOR benchmark.  This trend will continue so long as mega-cap stocks continue to drive the market upward.  Eventually this overbought market will end.  This new asset allocation should do well over the next 12 to 18 months.  Look to the Risk Ratios for better trends.

Huygens Risk Ratios

Other than the very important Information Ratio, the Huygens has improved over this past year.  Particularly significant is the positive slope of the Jensen Performance Index, although it is well off its high of last November.

With the Jensen trending down over the past few month we need to pay attention to see how this revised asset allocation performs over the summer months when the stock market tends to take a breather.

Financial Repression: Part 1

The Argument for Self-Management

Returning To Investing Roots: 5 August 2024