Welcome Back,
Hi there
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
Investing Snapshot
1. Weekly Theme: Tactical Rebalancing in Volatile Markets
Markets are pulling back, volatility is up double-digits, and both stocks and crypto have been chopping violently.
This week’s strategy is all about Tactical Rebalancing — shifting your allocations intentionally to keep your portfolio aligned with your goals while letting volatility work for you rather than against you.
Think of it as:
Trim what’s overstretched. Add to what’s undervalued. Keep your plan stable while the market isn’t.
2. Why This Matters Now
Volatility is jumping (VIX repeatedly up 10–14%). When volatility spikes, portfolios drift away from your original target mix faster.
Growth stocks and crypto corrected sharply, creating discounts in quality names — but also warning signs in high-beta areas.
Defensives and metals held up, signaling what the market trusts during uncertainty. Rebalancing takes advantage of those signals.
3. The Strategy: Tactical Rebalancing (Simple & Effective)
Here’s how to do it methodically, not emotionally:
Step 1 — Identify Your Target Allocation
Example:
60% stocks
30% bonds/cash
10% alternatives (crypto, metals, REITs)
(This is just an example — your mix may vary by goals.)
Step 2 — Check Where You Are Today
Because stocks and crypto fell sharply this week, a portfolio might now look like:
55% stocks
35% bonds/cash
10% alternatives
Tech, AI, and high-beta names especially weigh less after the weekly selloff.
Step 3 — Trim Strength, Add to Weakness
If something ballooned (like defensives, metals, or cash), trim slightly.
If something is temporarily under its target (quality tech, broad indexes, or crypto blue chips), add slowly and strategically.
This keeps you aligned with your plan while buying low and selling high by design.
Step 4 — Automate It (Optional)
Set rules such as:
Rebalance every 4 weeks, or
Rebalance whenever an asset class drifts 5%+ away from target.
Automation removes emotion — your strongest edge in a choppy environment.
4. Risk vs. Reward
✔️ Rewards
Helps you buy undervalued assets at better prices.
Keeps your portfolio aligned with long-term goals.
Reduces emotional decisions during volatility spikes.
⚠️ Risks
Catching a “falling knife” if an asset keeps dropping.
Selling winners too early if they continue rising.
Requires discipline — not every dip deserves buying.
Balancing consistency with judgment is key.
5. How to Take Action
Practical steps for every level:
🟢 Beginners
Pick a simple allocation (ex: 70% stock index fund, 20% bonds, 10% crypto/metals).
Use automatic monthly contributions to naturally rebalance.
Avoid individual stock picking while volatility is elevated.
🟡 Intermediate Investors
Check your allocation today → adjust anything misaligned by 3–5%.
Add small “buy-the-dip” positions in high-quality names (AAPL, MSFT, VOO, ETH).
Reduce exposure to highly speculative plays until volatility cools.
🔵 Advanced Investors
Use volatility bands to trigger rebalancing based on VIX levels.
Hedge selectively using options (covered calls, protective puts).
Rotate into value, defensives, and cash-flow assets while risk-on sectors stabilize.
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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.
