A great strategy isn’t just about returns—it’s about resilience. The true test of any investment strategy is how it performs in the worst drawdown years. Over the past 26 years, the two biggest market downturns were 2000-2002 and 2008, both of which saw the S&P 500 drop by 38%.

Here’s how the 20% TQQQ case fared during these periods:

• 2000-2002: The portfolio, which increased to 40% TQQQ at the end of both 2001 and 2002, experienced a 55% drawdown. Yet, just two years after the 2002 bottom, it reached new highs—five years after its last peak.
• 2008: The correction hit in a single year, with a 49% drawdown. But within two years, the portfolio was 50% above its previous 2007 high.

Key Takeaway: Even in the worst-case scenarios, the portfolio recovered to new highs within two years after the bottom. The strength of the Stars model lies in understanding that corrections will happen—but so will strong rebounds. Over the past 14 years, the average 5-year return for the 20% TQQQ case has remained steady at 25%.

Belief in the strategy comes from recognizing the patterns, staying disciplined, and trusting the model through market cycles.