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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. “Build Your Shock Absorber Portfolio”
This week’s strategy is all about protecting your upside by insulating your downside.
With volatility spiking, crypto swinging, and equities taking big intraday hits, the smartest investors aren’t just picking winners —
they’re building portfolios that absorb shocks without losing momentum.
Think of this as installing financial suspension: smoother ride, fewer surprises, better control.
2. Why This Matters Right Now
Volatility is back. The VIX spiked over 14% last week, signaling that more bumpy sessions are likely.
Macro uncertainty is rising. CPI data, Fed speeches, and slowing earnings guidance add pressure to growth assets.
Rotations are fast and unforgiving. Tech dropped hard, defensives held up, and commodities surged — a classic risk-off shuffle.
This environment rewards balance, hedging, and selective aggression — not all-in bets.
3. The Strategy: Build a Shock Absorber Portfolio
This is a 3-layer approach, where each layer protects the others:
Layer 1 — Stability (Your Cushion)
These are assets that don’t panic when the market does:
Short-term Treasuries (3–6 months)
High-yield savings
Laddered CDs
Core defensive stocks (KO, PFE, UNH, V)
Broad ETFs (VOO, SCHD)
Goal:
Keep 25–40% in stable assets so you never have to sell riskier positions during a dip.
Layer 2 — Growth With Guardrails
These are the assets with upside — but you hold them with discipline:
Big tech (AAPL, MSFT, AMZN)
High-quality semis (AVGO, NVDA — but size carefully right now)
“Power brands” (Costco, Lululemon, Visa)
Guardrails:
Use position sizing (2–5% max each)
Use stop-light rules
🟢 Strong trend → add
🟡 Choppy trend → hold
🔴 Downtrend → trim, don’t double down
Layer 3 — Opportunistic Plays (Your Controlled Risk)
This is where you target alpha — but with strict rules:
Select crypto (BTC, ETH, SOL)
AI-edge players (PLTR, CRWV — but tiny sizing)
Turnaround plays (DIS, F, RBLX)
Rules:
Limit this bucket to 10–15% total
Only buy when volatility is your friend, not your enemy
Scale in slowly — never in one chunk
4. Risk vs. Reward
✔️ Rewards
Your portfolio becomes resilient, not reactive
You capture upside without emotional decision-making
You’re positioned for both dips and rebounds
You outperform during volatile months — the hidden edge pros use
⚠️ Risks
Too much “cushion” can slightly reduce explosive upside
Requires self-awareness and discipline
Investors who chase hype may feel “too conservative” — until volatility hits
5. How to Take Action (By Investor Level)
BEGINNER — Make It Simple
Move 20–30% into safety (Treasuries, ETFs, savings).
Keep positions small — no more than 5% in any one stock.
Pick 1–2 growth names and stick with them.
Avoid chasing daily winners — consistency beats speed.
INTERMEDIATE — Balance + Precision
Use a 3-bucket system: Stability (30%) + Growth (50%) + Opportunities (20%).
Rebalance weekly or biweekly.
Add trend-following: only add to positions making higher highs.
Trim losers quickly; let winners run.
ADVANCED — Play Offense While Defending
Use options to hedge (e.g., SPY puts or collars).
Sell covered calls on stagnating positions.
Rotate sector exposure based on macro signals.
Maintain cash as a weapon, not an afterthought.
Scale into crypto using volatility bands (e.g., 3-tier buys on dips).
Closing Thought for the Week
In uncertain markets, discipline is a superpower.
Anyone can build a portfolio when everything’s green —
but the investor who builds a stable, shock-absorbing structure wins the long game.
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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.
