Twin Rocks – Oregon Coast
Kepler is the portfolio up for review this morning. When you look over the asset allocations you will observe this portfolio is heading in a very conservative direction. I am attempting to “recession proof” this account. When this bull market fever breaks it will be difficult to keep any assets on the positive side with exception of gold.
A number of ETFs will throw off dividends each month. Available cash will be used to keep the different assets within 1.0% on the low side. Assets above target will be neglected as then can run as long as possible. It is the assets below target that require attention.
Kepler Asset Allocation Model
As you check the Out of Balance column, SGOV is well below target. Limit orders are in place to bring that asset class into balance.
Kepler Rebalancing Recommendations
Limit orders are in place to purchase shares of VNQ, SGOV, and RSP. If those orders are struck all ETFs will be within the recommended target range. Again, I am not concerned about GLD being well above target. Right now the focus is on Real Estate (VNQ) and SGOV as they are outside the target range to the downside.
Kepler Performance Data
Since 12/31/2021 Kepler is either the poorest ITA performer or next to the bottom. Money was pulled out of this account for educational reasons and those withdrawals definitely hurt performance. Now is rebuilding time and we look to the Risk Ratios to see what direction the portfolio is moving.
Kepler Risk Ratios
I’m looking for improvement from both the Jensen Performance Index and Information Ratio. The Jensen is showing slight improvement as the portfolio has a very low beta rating. The Information Ratio indicates the Kepler is losing ground to the AOR benchmark. One positive and one negative. The increase in the Sortino Ratio indicates that value of the Kepler has improved over this past year.
Watch the Information and Jensen ratios over the next few months to see if the new asset allocation is pulling its weight. If the bull market continues, the Kepler will continue to falter. Should we see a major pullback, the Kepler should shine. As currently constructed, the Kepler is definitely not built for a bull market. Look to the Copernicus portfolio for that option.
Kepler Portfolio Update: 19 December 2025
Copernicus Portfolio Update: 14 December 2025
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Next week will be a busy one as five portfolios are scheduled for an update. They are: Carson, Millikan, Franklin, Schrodinger and Einstein. Three different investing models will be available or shown within these five portfolios.
I keep recommending investors include at least on Robo Advisor portfolio in their family holdings. Should one spouse want nothing to do with investing, monies from other portfolios can be moved into the computer managed portfolio. The Schrodinger is such an example.
Lowell