17th Street Fall Clouds
Pauling is an asset allocation portfolio set up to generate dividends. It is also a portfolio where the asset classes are consolidated or tilted toward value rather than growth. This is in keeping with the latest Vanguard recommendation of what the stock market is likely to look like over the next ten years.
Pauling Security Holdings
Here are the holdings in the Pauling portfolio. Note the emphasis on dividends and value.
Pauling Rebalancing Recommendations
The rebalancing process will be a slow one with the Pauling unless there is a major correction. As dividends come in I will use available cash to pick up a few shares of assets that are below target. Right now every ETF is below target with exception of SCHO.
In the 6th column from the right readers can see which ETFs have limit orders in place to add a few shares or a single share. Cash is at a premium.
Pauling Performance Data
As for performance since 12/31/2021, the Pauling is far behind all tracked benchmarks. The current asset allocation has not been operating since that date. Therefore I look to the Risk Ratio data to see how well the Pauling is currently performing.
Pauling Risk Ratios
Over the past year the Risk Ratios show only minor changes from month to month. While the slope of the Jensen is positive, it is essentially flat for the past year.
The Information Ratio indicates the Pauling is not keeping pace with the AOR benchmark. Watch the Information Ratio over the next year as that is critical as to how this new asset allocation mix is working going forward.
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