Kepler Portfolio Update: 23 June 2026

Kepler is the portfolio up for review this morning and there are few changes as cash is limited or orders are already in place for purchase.  The revised asset allocation model is set up to resist Financial Repression.  This is a test portfolio to keep an eye on over the next 2.5 years or until we vote in a new president.

Kepler Asset Allocation Model

Below are the current holdings for the Kepler.  Most of the $4,000 in cash is already set up to fill limit orders.  Should the second quarter generate more cash, it will be used to purchase more shares of SCHO if the market does not decline.  If we begin to see weakness, I will begin to add more shares to the asset classes most under target.

Kepler Rebalancing Recommendations

The first goal is to raise sufficient cash to bring all asset classes within 5% of the target goal.  Each month or update use available cash to bring asset classes closer to target.  It will likely be several months before we see the Kepler operating with a fully balanced asset allocation portfolio.

The 6th column from the right indicates the direction we are moving or the assets that need attention and more shares.

Kepler Performance Data

Kepler ranks at the bottom or near the bottom when it comes to IRR performance.  At this point I look to the risk ratios to see if the portfolio is making any positive progress.

Kepler Risk Ratios

Based on the Sortino Ratio, the Kepler is more valuable than it was a year ago.  Further, the slope of the Jensen Alpha is slightly positive – a good sign.

The Information Ratio dropped over the year indicating the portfolio is not keeping pace with the AOR benchmark.  Not a good sign.

Kepler Performance With FR Asset Allocation

While it is much too early to draw any meaningful conclusions, I was interested in seeing how well the “Financial Repression” asset allocation is performing.  Over the past several weeks the portfolio is performing a tad better than the total U.S. Equities (VTI) market.  This information is worth examining from time to time.

Financial Repression Portfolio from ChatGPT