Most investors fear drawdowns. But what if they were actually a good thing?
📉 Drawdown is the percent drop from a portfolio’s high to its subsequent low. But using one of the variations of the Stars model, that dip can become a powerful opportunity—not a threat.
🌟 With the “Social Security Security” variation, an initial investment of just $1,000–$5,000 can grow into $2M–$10M over 30 years using the best version of the model.
🌟 The “10% Solution”—investing 10% of your portfolio—can double your total portfolio in 10–15 years.
Here’s the surprising part:
The lost opportunity cost of not always being invested in the best version of the Stars model is 19 percentage points per year. Over five years, that adds up to a 95% lost return—compared to a potential drawdown of just 43% during a correction.
✅ That means corrections actually help.
They give you the chance to increase your TQQQ holdings up to 6x and accelerate your performance. More corrections = more upside.
🔁 Reframe drawdown as a gift. It’s where much of the Stars model’s outperformance is born.