When it comes to investing, there’s no shortage of strategies, but understanding their strengths and limitations is key. Here’s a quick breakdown:

Fundamentals

Fundamentals use government and stock data to help investors make decisions. The challenge? Predicting future fundamentals and knowing the exact price movements they’ll cause. Plus, fundamentals are backward-looking, analyzing past data rather than the future.

Technicals

Technicals focus on price movements, incorporating all known information. They offer guidance on potential future price moves. Tools like:

Andrews Lines: Use the last three pivots to predict the next one.

Elliott Wave: Help forecast the magnitude and timing of moves.

The Stars Model

The Stars Model is a game-changer. Unlike fundamentals or technicals, it’s a structural model requiring only an annual rebalance to the desired TQQQ percentage. Here’s why it stands out:

• No need for fundamentals – it uses ETFs like SPY and TQQQ to select stocks.
• No need for technicals – it profits in both up and down markets (with a two-year delay during down markets).
• Consistency – its structural rules remain unchanged over time. This innovative approach offers a simpler, more reliable way to navigate the markets. Curious how it works? Let’s connect!