Kepler Portfolio Review: 20 July 2026

School bus shelter – Virginia

Kepler and Gauss are the two portfolios up for review this week.  Neither are top performers while both are set up to resist the coming market draw-down.  This morning I added more shares of SCHO and SGOV to the Kepler.  When the August dividends appear I’ll likely add more shares of JEPQ and JEPI to increase income.  As currently constructed the Kepler returns a respectable 4.0%.

Kepler Security Holdings

Listed below are the current Kepler holdings.  Most asset classes, as represented by specific ETFs, are well under target.  This condition is likely to continue for many months.

Kepler Performance Data

Since 12/31/2021 the Kepler is way behind any of the list benchmarks.  When this is the situation I look to the Risk Ratios so see what is going on with the most recent trends.

Kepler Risk Ratios

One bit of positive news is the slightly positive slope of the Jensen.  The Information Ratio picked up over the past few months, but is still behind where it was a year ago.  At best the Kepler seems to be holding rather steady.

The decline in the Sortino Ratio is due to a recent educational withdrawal from the portfolio.

Overall, the Kepler is in a holding pattern just waiting for the market to correct.  This could be a long wait.  There were financial analysists who predicted the 2000 – 2002 crash to come as early as 1998.  So this could be a long wait, but I am patient as I prefer not to give back 40% to 50% as occurred during the tech bubble and financial crisis of 2008.  A few financial gurus predict this bubble could be even worse than the tech bubble.