Now that we are back at all time market highs, what do we do.
Stars is always 100% invested in the two ETFs SPY and TQQQ. Stars never calls market direction. Instead it focuses on a strategy that works no matter what the market does. You should too.
All of the outperformance of Stars is due to TQQQ. In a rising market TQQQ acts like 4 SPY. Coming off a correction low TQQQ acts like 20-30 SPY. The result is the return in rising markets is roughly equal to the 3 year average return of the correction year plus the two subsequent years. The result is you earn twice the S&P.
Currently the typical investor earns 5% per year less than the market. Stars earns twice the market. The S&P has a 100 year average return of 10%. The investor earns 5% per year. Stars earns 20% per year. Over 25 years Stars earns 30 times the typical investor.
Now is always the best time to start. The lost opportunity cost of not being in Stars is 25% per year. In a 4 year cycle the lost opportunity cost is 100%. In a correction you might have a 50% drawdown which is not a loss. Start now and always be 100% invested.
The S&P buys new highs and sells new lows. Investors tend to do the opposite which is the main reason investors underperform the S&P. You want to be like the S&P.