We begin the review of Kepler by examining the Dashboard. The Dashboard is one of the critical worksheets found inside the TLH Spreadsheet, our portfolio tracking software program. Several asset classes are out of balance and we will begin to make adjustments based on information found later in this blog post.
Kepler Dashboard: Depending of the optimization that is to follow, I expect to see the mid- and small-cap blend asset classes yield their allocation to other asset classes such as large-cap blend (VTI). The portfolio is heavy with cash, but I am not in a hurry to invest with the market this high. I’m waiting for a 10% correction.
Kepler Performance Data: The Kepler lags the VTSMX by a significant amount (-2.6%) and it will be difficult to make up the difference. With a 14% IRR, the portfolio continues to outperform the customized benchmark, the ITA Index. Most of the holdings are making positive contributions to the IRR of Kepler.
Efficient Frontier: While it is difficult to make out all the individual ETFs on the Efficient frontier graph, readers can easily figure out that TLT, DBC, and TIP have been anchors to this portfolio. Even VWO has not carried its weight.
I messed up as this post was to be printed several days ago.