While tariffs may stir headlines, they don’t alter the core mechanics of the Stars model. What they do create is volatility—and that’s where Stars thrives.

Over a 5-year period, higher market volatility allows Stars to capture more profits during annual rebalancing. Historically, even in down years, those profits tend to materialize one to two years after the bottom.

🔍 So what happens during a correction?
If the S&P 500 corrects by 10–20%, Stars’ performance is expected to mirror the past 5 years—where the best-performing allocation (40/60) returned an impressive 41%, outperforming the S&P by 27 percentage points.

In a deeper correction (40%), performance may drop to around 10% over 5 years—but that’s still about 8 percentage points above the S&P.

These outcomes are backed by over 25 years of historical data. The takeaway?

It’s not the cause of volatility that matters—it’s the scale of the correction.

👉 For long-term investors, volatility isn’t the enemy. It’s opportunity.