Huygens Portfolio Update: December 18, 2025 | ITA Asset Management

Huygens will assess the asset allocation portfolio this morning. This portfolio is designed to ‘resist’ from taking too big a hit if the correction or recession starts sometime in the next twelve to eighteen months. A correction or recession is certainly not a certainty, as interest rates are likely to fall by another 25 basis points in 2026 and the government will pump a lot of money into the economy. The higher this market moves without any sort of break, the greater the chance of a correction or worse. Markets do not march into the sky without end.

Huygens asset allocations

Below you will find the current asset allocation for the Huygens. Note that the portfolio no longer holds shares in VOO, but instead holds RSP, an equal-cap weighted ETF for the S&P 500. This reduces exposure to overvalued AI stocks.

The Huygens also owns a number of treasury ETFs that will generate income for future investments. In the following screenshot I explain how new money is managed.

Huygens recommendations for rebalancing

There is a limit order in effect to purchase more shares of RSP. What I do is scroll through the list looking for any asset classes or ETFs that show up as buys in the Manual Risk Adjustments worksheet. If cash is available, I will place limit orders very close to the current price. Orders have now been placed to buy more shares of RSP, VEA and VDC.

Huygens performance data

As of December 31, 2021, Huygens is still behind the AOR benchmark. Readers may wonder why I keep mentioning the date 12/31/2021 as the starting period. This is when the latest portfolios have been launched and I need to use the same launch date so I can compare the performance of the different portfolios.

Huygens risk ratios

Although the Huygens is not keeping pace with the AOR benchmark, it still has a positive Jensen Performance Index. This is largely due to the low beta for Huygens.

One of the goals for 2026 is to see the Jensen slope move from negative to positive.

Huygens Recession Portfolio Review: November 28, 2025

The Huygens is now close to the ‘required’ asset allocation for the 2026 season.

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