November 3, 2025
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Good morning! In today’s issue, we’ll dig into the all of the latest moves and highlight what they mean for you right now. Along the way, you’ll find insights you can put to work immediately
— Ryan Rincon, Founder at The Wealth Wagon Inc.
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Investing Snapshot
💡 1. Weekly Theme: “Play Defense While Positioning for Offense”
The markets have entered a crosscurrent phase — volatility is creeping back, yet long-term opportunities are quietly forming beneath the noise. This week’s focus is on balancing defensive positioning with strategic offensive exposure — protecting your portfolio while setting it up for the next growth cycle.
📊 2. Why This Matters
Volatility’s Back: The VIX just rose over 17, and with the Fed minutes, jobs data, and more earnings on deck, short-term swings are likely.
Sector Divergence: Energy, select tech, and AI infrastructure are showing strength, but cyclicals and consumer names are under pressure — a sign the next trend shift is near.
Capital Efficiency Matters: With yields still above 5%, cash and short-term bonds are once again viable defensive plays — allowing investors to wait patiently for better risk/reward setups.
🧭 3. The Strategy: “Barbell Investing”
Barbell investing means balancing defensive stability on one side with targeted growth exposure on the other — minimizing risk without missing upside.
Here’s how to apply it:
Defensive Core (40–60%) – Keep your base in stable assets: money-market funds, short-term Treasuries, and high-dividend equities (utilities, defense, healthcare).
Growth Edge (30–50%) – Hold exposure to long-term themes with asymmetric upside — think AI, semiconductors, clean energy, or real estate technology.
Opportunistic Cash (10–20%) – Reserve dry powder to buy dips. Markets often give second chances after volatility spikes.
Review Monthly – Rebalance only when allocations drift 5–10%. This keeps emotions out and performance steady.
This approach thrives when the market is undecided — it lets you stay invested without being overexposed.
⚖️ 4. Risk vs. Reward
✅ Pros:
Reduces drawdowns during corrections.
Maintains exposure to potential breakouts.
Creates flexibility to rotate quickly when macro conditions shift.
⚠️ Cons:
Can lag full-risk portfolios during strong bull runs.
Requires discipline to rebalance and not over-hedge.
Cash drag can slightly reduce short-term returns.
💬 Bottom Line: It’s not about predicting — it’s about preparing.
🚀 5. How to Take Action
Beginner:
Keep 50% in a broad index ETF (e.g., VOO or QQQ).
Park 40% in a high-yield savings or Treasury ETF (e.g., SGOV).
Use the remaining 10% to start small positions in growth sectors (AI, green energy, or data infrastructure).
Intermediate:
Blend dividend ETFs with high-growth thematic ETFs.
Add 10–15% in commodities or REITs for inflation balance.
Rebalance quarterly or when allocation shifts 5%.
Advanced:
Use options spreads or inverse ETFs to hedge downside.
Allocate tactically: overweight momentum sectors, underweight slowing ones.
Deploy short-term bond ladders for yield and liquidity flexibility.
🧠 Closing Thought
The most successful investors don’t just chase opportunity — they engineer resilience.
This week, play both sides of the field: protect capital with discipline, and deploy it with purpose when volatility creates opportunity.
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That’s All For Today
I hope you enjoyed today’s issue of The Wealth Wagon. If you have any questions regarding today’s issue or future issues feel free to reply to this email and we will get back to you as soon as possible. Come back tomorrow for another great post. I hope to see you. 🤙
— Ryan Rincon, CEO and Founder at The Wealth Wagon Inc.
Disclaimer: This newsletter is for informational and educational purposes only and reflects the opinions of its editors and contributors. The content provided, including but not limited to real estate tips, stock market insights, business marketing strategies, and startup advice, is shared for general guidance and does not constitute financial, investment, real estate, legal, or business advice. We do not guarantee the accuracy, completeness, or reliability of any information provided. Past performance is not indicative of future results. All investment, real estate, and business decisions involve inherent risks, and readers are encouraged to perform their own due diligence and consult with qualified professionals before taking any action. This newsletter does not establish a fiduciary, advisory, or professional relationship between the publishers and readers.
