Pauling Interim Update: 9 February 2022

Kipling

Before getting into the Pauling update, I’ll mention that yesterday was a very sad day in our house as we needed to euthanize a most wonderful dog, Kipling.  He was a smart Bichon Frise rescue dog and he never forgot those who showed him affection.  He was my constant companion who loved classical music, car trips, and fellow species.  He will live on in the name of the spreadsheet we use to manage portfolios.

The regular review for the Pauling is not due for another two weeks, but due to recent volatility, I check in on these portfolios from time to time to see if they are still on target.  While I generally don’t trade securities during these interim, I will check on the TSLOs to make sure capital is preserved.

Pauling Dual Momentum Recommendation

Note the move from VTI to ESGV.  This is an effort to a bit more responsibly.  Formerly known as Social Responsible Investing the new term is ESG.  The expense ratio is a little higher, but worth it in my opinion.

The current recommendation is to hold 100% of the portfolio in U.S. Equities (VTI or ESGV).  I need to pick up more shares of ESGV to fulfill this recommendation.

Pauling Performance Data

January was a rough month on the Pauling as it lost 10% of its value.  Over the past 14 months the Pauling continues to outperform the AOR benchmark as well as the VTHRX Vanguard Target Fund.  Check the data below.  For those new to ITA, the performance tracking data comes from Quant IX software known as Investment Account Manager (IAM).  IAM is considered the premier portfolio tracking software for the small investor.  I highly recommend it for those interested in tracking the performance of their investments.

Pauling Risk Ratio

How is the Pauling performing when risk enters the equation?  January data shows a definite decline.  I’ll post February data when the Pauling comes up for review on February 22nd.

Jensen’s Performance Index (5.96) is still quite high as is the slope (1.0) of the Jensen.

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