Fear levels are sky-high right now. Investors are asking: What should I do? Is it time to sell? Should I wait?

Here’s what the Stars Model does in moments like this: Nothing.

That’s right—no panic, no emotion. The model isn’t driven by fear or greed. It follows data, not headlines. And that’s what separates consistent long-term performance from reactionary investing.

What’s happening now?

As of now, TQQQ is down 55% from its 2024 year-end close. Based on the Stars Model rules:

If TQQQ is down 40% or more at year-end, the model rebalances to 60% TQQQ
If it’s down less than 40%, the model rebalances to 40% TQQQ

Simple. Predictable. Objective.

What if I just found the model?

If you’ve been following the Stars Model for years: do nothing—you’re already positioned.

But if you’re new (especially since Earn Twice the S&P was published in January 2025), here’s what I suggest:

• Buy 20% TQQQ now
• Rebalance to 40% or 60% at year-end, depending on whether TQQQ remains down more than 40%

But I thought you said the model has near-zero risk?

It does—but context matters.

If you’ve been in the model for 5+ years, the performance is highly accurate, and drawdowns are temporary. In the early years, some short-term losses may occur, but they’re historically recovered within a few years—thanks to the power of volatility.

How much more downside is possible?

Looking at the 5-year chart: TQQQ is nearly at parity with SPY (S&P 500). Eventually, investors will shift back toward growth—favoring top-performing companies in TQQQ over the broader market in SPY.

Why doesn’t the model rebalance mid-year?

Because 40% corrections happen frequently, and about half the time they’re even worse. Rare but painful scenarios—like back-to-back down years (’01–’02)—can cause extended recovery periods.

To avoid being whipsawed, the model only rebalances annually, reducing the chances of locking in losses during temporary dips.

Can the model reflect a bearish or bullish view?

Yes. The Stars Model has 8 versions designed for different risk profiles.

• A lower TQQQ allocation expresses a more conservative stance
• But keep in mind: trying to time the market typically hurts performance

Why can’t we have high returns and low drawdowns?

Because great performance comes from great volatility. There’s no shortcut. But you can choose the model version that aligns with the level of drawdown you’re comfortable accepting.

Final thought: Volatility is your ally

It’s not something to fear—it’s the very fuel behind the model’s long-term outperformance.

If you’re serious about building wealth and staying steady through market storms, let the Stars Model do the work.

Learn more in Earn Twice the S&P or explore detailed results at www.leeekholm.com