Pauling Portfolio Update: 13 July 2026

Fort Yamhill – Located in Dayton, Oregon

The Pauling is another portfolio undergoing asset allocation changes in an effort to both improve performance while providing additional protection against a major market draw-down.  Interest rates moved up for the 30-year bond as there were fewer buyers.  Higher interest rates do not bode well for the market.  However, the U.S. Equities market continues to shed negative news and just continues to move higher.  There is a limit to this continued growth and that is why I am playing the conservative card.  Check out the Pauling analysis below.

Pauling Security Holdings

Here are the current security (ETF) holdings in the Pauling.  All asset classes are under target with the exception of short-term treasuries (SCHO).  This ETF is essentially my “money market” or where I park money until it is needed to purchase shares in the other asset classes.

Pauling Rebalancing Recommendations

As with several other portfolios recently updated, I am gradually bringing ETFs closer to target.  But it will take several months as I am no hurry to move out of short-term treasuries (SCHO and/or BIL).

When next up for review I want all ETFs to be within 5.0% of the target.  In September the goal is to see each ETF within 4.5% of target. Sometime in 2027 the goal is to have the portfolio in balance,  In balance is subjective.  I would like to keep each ETF within +/- 3.0% of target, if not closer.

Pauling Performance Data

Since 12/31/2021 the Pauling is far behind the AOR benchmark.  Closing the gap at this point is nearly impossible.

Pauling Risk Ratios

Over the past year the Jensen Performance Index improved slightly as indicated by the 0.04 positive slope.  The Sortino Ratio remains consistently positive, but the critical Information Ratio declined.  That is one ratio of concern and I hope to turn it around over the next year.

With the revised asset allocation mix it will be important to watch the Jensen and Information Ratios over the next year.

Einstein and Carson are the next portfolios up for review this week.  Einstein is one of poorest performing portfolios while the Carson is one of the best.

Einstein Portfolio Review: 20 May 2026