
Is it possible for a buy-and-hold strategy like the Stars model to actually reduce risk? đź“Š
With a near 100% accuracy track record, the evidence says yes.
The financial services industry often measures theoretical risk in short intervals—far less than a year. But the Stars model takes a different approach. It rebalances just once a year, at year-end, to manage risk while staying aligned with long-term growth potential.
- At new TQQQ highs: The Stars model consistently reduces shares to maintain the desired risk level.
- During a TQQQ correction (40%+ from the previous year close): The model doubles the percent allocation instead of exiting the position—a move the financial services industry would rarely suggest.
Why wouldn’t you want to own four times the shares at half the price from just a year ago? Remember, TQQQ tracks the 50 fastest-growing stocks.Â
As is often the case, “sound” risk theory conflicts with sound investment decisions. The Stars model shows how long-term, disciplined strategies can challenge conventional thinking—and win.