Millikan Portfolio Review: 29 June 2026

“Preserving wealth in retirement requires more than pursuing returns—it requires preparing for periods when financial markets and government policies work against investors. History has shown that extended market corrections, rising inflation, low real interest rates, and increasing government debt can create an environment in which traditional investment strategies struggle to protect purchasing power. A thoughtfully diversified portfolio of low-cost exchange-traded funds (ETFs) can provide a disciplined framework for navigating these challenges while maintaining opportunities for long-term growth.

This portfolio (as well as several other ITA portfolios) is designed with two primary objectives: preserving capital during periods of significant market volatility and maintaining purchasing power in the face of potential financial repression. Financial repression refers to a set of economic policies that may include keeping interest rates below the rate of inflation, encouraging investment in government debt, increasing taxes on investment income, or allowing inflation to gradually reduce the real value of debt. While these policies may support government finances, they can erode the real wealth of investors who rely heavily on cash or traditional fixed-income investments.

To address these risks, the portfolio emphasizes broad diversification across domestic and international equities, high-quality bonds with varying durations, inflation-protected securities, precious metals, and other defensive asset classes. Each ETF has been selected for its low expense ratio, liquidity, transparency, and ability to provide exposure to a specific segment of the global investment landscape. By combining assets that historically have responded differently to changing economic conditions, the portfolio seeks to reduce overall volatility while maintaining resilience across a wide range of market environments.

Rather than attempting to predict the timing of recessions, bear markets, or changes in government policy, this investment strategy recognizes that uncertainty is a permanent feature of financial markets. Diversification, disciplined asset allocation, and periodic rebalancing are the primary tools used to manage risk. Although no investment portfolio can eliminate losses during severe downturns, a diversified ETF approach can help reduce the magnitude of declines and position investors to participate in subsequent market recoveries.

Ultimately, this portfolio is intended for investors who place a high value on capital preservation, steady long-term growth, and protecting purchasing power over multiple economic cycles. By focusing on low-cost ETFs and maintaining exposure to a balanced mix of growth-oriented and defensive assets, the portfolio aims to provide a durable investment strategy capable of weathering both conventional market corrections and the more challenging conditions associated with financial repression.”

Millikan Current Security Holdings

Below are the current holdings and as readers can see, most of the asset classes are well below target.  With the stock market this high I plan to hold a significant percentage of the portfolio in short-term treasuries (SCHO).

Millikan Rebalancing Recommendations

When it comes to rebalancing the first move is to bring all asset classes within 5% of target.  VEA and VTI are the two ETFs that need attention.  Since VTI is the ETF that concentrates on U.S. Equities, I plan to let that one ride until there is a better buying opportunity.

Millikan Performance Data

Since 12/31/2021 the Millikan has outperformed the AOR benchmark by a comfortable margin.  Keeping up with the S&P 500 (SPY) is another matter.

Millikan Risk Ratios

The two most critical risk ratios are below where they were a year ago.  Diversifying away from VTI has not been the correct move as this market moves higher.  Patience is required.  It could be six months to a year before we see much of a change, but I am convinced we are in for some sort of market correct.