Pauling Dual Momentum Portfolio Review: 18 May 2023

In contrast to the Copernicus the Pauling Dual Momentum™ portfolio requires a little more work to manage.  Since decisions are required there is a greater probability of messing up the portfolio, thus reducing returns.  Is the model weak or are lack of results due to a incompetent manager?  That is the question.

Pauling Dual Momentum Recommendation

Based on the latest data, the recommendation is to place 100% of the investments in International Equities (VEU).  The Pauling currently holds 240 shares of VEU and I have an array of limit orders set to pick up more shares.  In order for the Pauling to fill the recommended 656 shares the international market will need to decline so as to pick off the limit orders.

Pauling Performance Data

Pauling is severely lagging the S&P 500 (SPY).  This is why I am placing the Pauling, and the Dual Momentum model, on notice.  There are easier and more profitable ways to work with investments.

Pauling Risk Ratios

The following Risk Ratios table provides much more information regarding trends for a given portfolio.  As frequently mentioned, I pay most attention to the Jensen, Information, and Sortino ratios, and in that order.  Since last May the Information Ratio improved, but the Jensen and Sortino gave up a lot of ground.

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