Fall Center Piece
Huygens is a typical Asset Allocation portfolio that is currently in balance. At this point all the investor needs to do is keep the various asset classes close to target when dividends provide sufficient cash to make the adjustments. Huygens is classified as a passive portfolio as is the Schrodinger.
The Huygens is roughly 75% equities and 25% bonds.
Huygens Asset Allocation Model
Below is the current makeup of the Huygens. Of all the holdings SHV is the least important when it comes to keeping in within the target range. I use SHV as a “cash” holding and will use this money to keep the other asset classes in balance.
Huygens Rebalancing Recommendations
If you check the position column all Buy recommendations, with exception of SHV, are above target. With the small amount of cash available I set a few limit orders for ETFs most under target. The primary example is BNDX.
Huygens Performance Data
Since 12/31/2021 the Huygens is edging out the AOR benchmark. All the other potential benchmarks are well ahead of the Huygens Internal Rate of Return (IRR). In a strong bull market diversification is not the friend of performance.
Huygens Risk Ratios
All current September values are well below where they were a year ago. We have seen some strength in the ratios since last April when the full force of tariffs were first announced.
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