Let’s be honest—market corrections can be unsettling. If you’re feeling anxious right now, you’re not alone. But panic doesn’t serve you. What does? A steady hand and a strategy rooted in long-term performance.

If your portfolio is roughly divided between stocks, funds, bonds, and cash, you might be wondering what changes—if any—you should make in this environment.

Where We Are Now

The S&P 500 has corrected about 15% from its high, while TQQQ (a triple-leveraged Nasdaq ETF) has fallen 53%. When you zoom out and look at the past five years, SPY (which tracks the S&P 500) currently sits in the 70th percentile of its range. TQQQ, on the other hand, is in the 35th percentile—making it look like a compelling value opportunity relative to SPY.

Should You Wait for the Market to Drop Further?

You could—but no one can predict the bottom with certainty. That’s why long-term investors use strategies that work across market cycles, like the Stars model.

The most successful version of the Stars model began the year with a 40% allocation to TQQQ. Over the past decade, this model outperformed all major ETFs by 10 percentage points. While 40% may feel aggressive, even starting with a 20% allocation to TQQQ in your diversified portfolio could improve long-term performance.

Where to Find the Capital

You don’t need to inject new money to make this move. Look at your current holdings—especially your underperforming individual stocks and mutual funds. Trim or exit your lowest performers to make room for the 20% allocation to TQQQ.

What Comes Next?

Monitor your portfolio. If TQQQ ends the year down 40% (below $47), the Stars model suggests increasing your TQQQ allocation to 40%. That’s the power of strategic rebalancing—buying more when value appears, not when emotions run high.

Yes, the most aggressive version of the Stars model calls for going to 60% TQQQ—but that’s not where you need to begin. Start with 20%, stay consistent, and let compounding and value positioning work in your favor over time.

Let’s connect. If you’re rethinking your investment strategy or want to learn more about the Stars model, I’d be happy to share more insights. Smart investing is about confidence, not chaos.