Huygens Portfolio Update: 27 August 2026

Ephesus Ruins

Asset allocation is a fundamental investment strategy that involves distributing resources among various asset categories to balance risk and reward. The Huygens Portfolio exemplifies this approach by strategically diversifying investments across equities, fixed income, and alternative assets. By meticulously analyzing market conditions and individual asset performance, the Huygens Portfolio aims to optimize returns while mitigating potential losses. This disciplined allocation framework is essential for achieving long-term financial goals.

To be absolutely frank, the Kepler is one of the poorest performing portfolios tracked here at ITA Wealth Management.  Educational withdrawals at critical market periods definitely hurt performance.  There is a lesson to be learned if one is building a retirement portfolio.

• Avoid withdrawals if at all possible.
• When the market dips, purchase more shares if possible.
• When the market is high, build case reserves.  That is what I am currently doing with the Kepler.
• Maintain the asset allocation balance.  This is a contradiction with the third recommendation as I am not currently following this recommendation.

Kepler Security Holdings

Below are the current holdings in the Kepler.  Over on the right-hand column we see what asset classes are out of balance.  Cash is nil this month so we are not going to purchase more shares of VTI or VIG, the two ETFs most below target.  It the market were not so high I would sell shares of SCHO and begin to rebuild VTI.  By holding on to shares of SCHO I will increase returns which in turn can be use to rebuild assets currently below target.

Note that the Kepler will generate a 4.0% return.  In the September review I hope to have sufficient cash to move a few asset classes closer to target.

Kepler Rebalancing Recommendations

I really could have omitted this screenshot this month as no changes are recommended due to an overbought equities market.

Take note of the low (0.234) beta value.

Kepler Performance Data

As mentioned above, the Kepler is far behind its benchmark.  This condition will persist so long as the U.S. equities market continues to climb upward.  The large percentage held in Fixed Income is in preparation to purchase shares if and when we see a major market correction.  It is coming.  It is just a matter of when.

Kepler Risk Ratios

A glimmer of hope for the Kepler is the positive slope of the Jensen.  On a risk adjusted basis, the portfolio is slowly gaining ground and the hope is that the current asset allocation, constructed to handle Financial Repression, will continue to grow and eventually move into positive territory.

Comments are always welcome.