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
“Precision Positioning”
This week’s strategy focuses on fine-tuning your portfolio to match where the market is actually moving — not where it used to be. With volatility low, trends forming in tech and AI, and capital rotating across sectors, this is the perfect moment to tighten your allocations rather than overhaul your portfolio.
Precision Positioning = adjusting weightings, upgrading asset quality, removing dead weight, and purposefully leaning into the strongest themes.
2. Why This Matters Right Now
Volatility is falling (VIX repeatedly dropping): This gives investors rare breathing room to reposition before turbulence returns.
Money is rotating, not rushing: AI, small caps, selective commodities, and certain tech names are consistently leading — precision helps you capture trend winners.
2025 positioning has already begun: Institutions are moving early. Investors who adjust now will enjoy the “lift” as new-year flows build.
3. The Strategy: How to Apply “Precision Positioning”
A simple 4-step method you can use today:
STEP 1 — Identify your winners & losers
Look at your last 30 days of performance:
Highlight 3 best performers (your momentum drivers).
Highlight 3 worst performers (your drag positions).
Not everything that’s red should be sold — but something should be reviewed.
STEP 2 — Reallocate toward strength (but gradually)
Shift 1–3% of your portfolio from weaker names into stronger, higher-conviction assets.
This keeps you aligned with trends without becoming overly concentrated.
Examples:
AI infrastructure → trending up.
Small caps → gaining strength.
Crypto leaders → showing weekly resilience.
STEP 3 — Upgrade quality
Instead of jumping into new ideas, upgrade what you already own.
Ask:
Is there a higher-quality stock, ETF, or crypto in the same sector?
Can you replace a mediocre position with a proven leader?
Quality compounds. Mediocrity doesn’t.
STEP 4 — Clean the bottom 5%
Every portfolio has “junk positions” — old trades, speculative leftovers, or winners you held too long.
Trim or remove them to create strategic cash for better opportunities.
Precision isn’t about buying more — it’s about trading up.
4. Risk vs. Reward
✅ Rewards
Keeps your portfolio aligned with real market momentum.
Reduces dead weight and improves long-term compounding.
Builds discipline and clarity in your investment process.
⚠️ Risks
Too much rebalancing can create overtrading or unnecessary taxes.
Cutting underperformers too early can cause you to miss a reversal.
Leaning too far into winners can create concentration risk.
Key: Precision ≠ Aggression.
You are fine-tuning, not overhauling.
5. How to Take Action (Beginner → Advanced)
🟢 Beginners
Pick one weak position to reduce this week.
Increase your strongest ETF or stock by $25–$100, depending on your budget.
Don’t chase volatility — stick to your watchlist.
🟡 Intermediate
Rebalance 3–5% of your portfolio toward clear macro winners (AI, small caps, or leading crypto assets).
Replace one low-quality holding with a stronger, more stable leader.
Begin tracking your holdings with a simple monthly performance sheet.
🔵 Advanced
Conduct a sector-by-sector audit — overweight strength, underweight stagnation.
Layer positions using staggered buy levels (laddering).
Hedge selectively (e.g., long VOO + small position in volatility or commodities).
Prepare capital for any pullback in early Q1, which often sets the tone for the year.
Final Thought
Precision beats prediction.
This week is your chance to strengthen your portfolio without the pressure of chaos or uncertainty. Make small, smart adjustments — they compound faster than you think.
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.
