Pauling Asset Allocation Portfolio: 30 March 2026

NO KINGS march – Canby, Oregon

Pauling is the last portfolio I will be reviewing before the end of the first quarter.  The 4th quarter GDP of 2025 was revised to a meager 0.7%.  If the first quarter of 2026 comes in with a negative number we may well be on the way to a recession.  The Iran war is definitely a drag on the U.S. economy with gas prices moving above $5.00 a gallon here in Oregon.

Market volatility reflects the words out of the White House and that information comes with a high dose of skepticism as the president has a difficult time telling the truth.

Pauling Asset Allocation Investments

Below readers find the current asset allocation makeup of the Pauling portfolio.  This is a “classic” AA portfolio with diversification covering investments all over the globe.

Pauling Rebalancing Recommendations

The beta of the Pauling is a very low 0.314 or about 1/3 as volatile as the S&P 500.  The Pauling is designed to resist, to some degree, a major draw-down.

Limit orders are in place to fill several asset classes.  Most of the order prices are placed around 10% below the current prices as I am no hurry to use up available cash in this market environment.

Pauling Performance Data

Pauling has been less than a stellar performer.  Pulling money out of the portfolio this month did not help performance, but the owner needed operational money.

Pauling Risk Ratios

The March 2026 data shows a definite drop since February and that goes for all four risk measurements.  The data does not look quite so poor when compared with March of 2025, although the Information Ratio indicates the Pauling is not keeping pace with the AOR benchmark.

Single bright bit of data is the positive slope of the Jensen Alpha, also known as the Jensen Performance Index.