If you’ve heard me reference the 30/60 strategy, here’s what I mean:

In up years, rebalance to 30% TQQQ.

In down years (when TQQQ drops more than 40%), rebalance to 60% TQQQ.

Using the compounding factor, we can see how profitable each approach can be:

• Conservative investors might favor the 10/40 strategy, where a $10,000 investment 26 years ago would now be worth $470,000 (compounding factor: 47).
• Aggressive investors might prefer the 30/60 strategy, which boosts the compounding factor to 114, making that same $10,000 investment grow to $1,140,000 over 26 years.

It’s worth noting that increasing TQQQ allocation to 40% is possible, but exceeding that can limit diversification opportunities in your portfolio. And failing to double the TQQQ percentage in hard down years significantly impacts results—switching from 30/60 to 30/30 cuts the compounding factor nearly in half, from 114 to 59.

You can explore all these scenarios in detail on the website. Which strategy fits your goals? Let’s discuss.