Huygens Portfolio Update: 18 December 2025

Elf meets Santa

Huygens is the asset allocation portfolio up for review this morning.  This portfolio is set up to “resist” taking too big a hit when the correction or recession sets in sometime over the next 12 to 18 months.  A correction or recession is certainly not a sure thing as interest rates will likely drop another 25 basis points in 2026 and the government is moving a ton of money into the economy.  The higher this market moves without any sort of pausing, the greater the probability of a correction or worse.  Markets do not march to the sky without an end.

Huygens Asset Allocations

Below is the current asset allocation for the Huygens.  Note that the portfolio no longer holds shares in VOO, but instead is holding RSP, an equal-cap weighted ETF for the S&P 500.  This reduces exposure to overvalued AI stocks.

The Huygens also holds a number of treasury ETFs which will generate income for future investing.  In the next screenshot I explain how new money is managed.

Huygens Rebalancing Recommendations

A limit order is in place to purchase more shares of RSP.  What I do is to go down the list looking for asset classes or ETFs that show up as a Buy in the Manual Risk Adjustments worksheet.  If cash is available I will place limit orders very close to the current price.  Orders are now in place to purchase more shares of RSP, VEA, and VDC.

Huygens Performance Data

Since 12/31/2021 the Huygens is still behind the AOR benchmark.  Readers may wonder why I keep referring to the 12/31/2021 date as the starting period.  This is when the newest portfolios were launched and I need to use the same starting date so I can compare performance between the different portfolios.

Huygens Risk Ratios

Despite not keeping pace with the AOR benchmark, the Huygens still has a positive Jensen Performance Index.  This is due in large part to the low beta for Huygens.

One of the goals for 2026 is to see the slope of the Jensen move from negative to positive.

Huygens Recession Portfolio Review: 28 November 2025

The Huygens is now close to the asset allocations “required” for the 2026 season.