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In my most recent post, before the Holiday break (8/31/26) I noted “we’re headed into what are traditionally the most challenging two months of the year; September and October,” while adding “these two months are not to be taken lightly. But they shouldn’t deter anyone from implementing their long term wealth building approach. “
Finally, I noted that September and October are excellent months “to prepare for November and December which are usually months which deliver some of the best gains of the year,” while describing, in detail, an excellent strategy to implement the preparation.
You can find the full details here.
So far, our caution has been well rewarded as the market’s volatility has been pronounced. Moreover, as the situation in Iran escalates, and the repercussions of whatever the Fed decides regarding interest rates will circulate through the market.
We remain in a balanced position focused on ETFs which invest in sectors that are working in the current market conditions.
Our recent results delivered a welcome profit for the otherwise volatile month of September. Here are the details:
SOLD - iShares Core S&P Small Cap ETF (IJR). Bought 6/8/26: $138.75. SOLD 9/9/26: $143. Return for this trade: $500/100 shares (3.61%).
Making Adjustments that Work Part II
In the prior post I discussed adjusting your retirement plan (IRA, 401 – k) contribution level to match market conditions. Today, I’m introducing an asset allocation model to our ETF portfolio.
It’s a simple construct, which together with selective adjustments to your contributions will provide a sound set of risk management guidelines to your portfolio.
While asset allocation models often discuss the amount of stocks and bonds in a portfolio, my asset allocation model for the Sector Selector will consist simply of ETFs (which you can find in our portfolio selections below.
In the current market, here’s the best mix for a retirement fund:
Stock Market Exposure: 60%
Cash: 40%
Thus, if you have a $100,000 portfolio (easy for illustrative purposes), 60% ($60,000,) should be divided between the ETFs described in our BUY list, while 40% should be in cash. That’s a conservative mix for sure. But as I stated in our last post, this is a volatile market. Therefore, having more than usual cash in the portfolio keeps things stable.
I will be updating this allocation model on a weekly basis.
For a more detailed daily analysis of the markets on a daily basis, I recommend checking out my Smart Money Passport Substack. If you’re not a subscriber, I suggest grabbing at least a FREE subscription to the service as you’ll receive our weekly Smart Money Trading and Strategy Weekly late Friday or early Saturday morning with all the details.
As a FREE subscriber to the Smart Money Passport, you’ll also receive our daily market update which keeps you in touch with what’s going on.
As a PAID subscriber, you have full access to our stock portfolio.