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October 13, 2025
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Good morning! In today’s issue, we’ll dig into another investment strategy you can implement. Along the way, you’ll find insights you can put to work immediately.
— Ryan Rincon, Founder at The Wealth Wagon Inc.
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Investing Snapshot
Defensive Investing – Protecting Your Portfolio in Volatile Times
🧭 1. Weekly Theme
This week, we’re focusing on defensive investing — building resilience in your portfolio when the markets feel shaky. After a week of steep losses across stocks and crypto, rising volatility, and renewed inflation concerns, investors are shifting from chasing gains to protecting capital. Defensive investing isn’t about hiding from the market — it’s about staying in the game smartly.
📊 2. Why This Matters
Volatility is rising: The VIX surged over 30% last week — a clear signal that fear is back in the markets.
Broad sell-offs hit every sector: From tech to crypto to oil, few areas were spared. Capital preservation becomes key when correlations spike.
Interest rates remain sticky: With inflation cooling slowly, the Fed may keep rates higher for longer, making stable, income-oriented assets more attractive.
🧱 3. The Strategy – How to Defend Without Retreating
Here’s how to apply a defensive approach without abandoning growth potential:
Step 1: Strengthen Your Core Holdings
Stick with high-quality, cash-generating companies — firms with low debt, strong balance sheets, and steady dividends. Think consumer staples, utilities, and healthcare.
Step 2: Diversify Across Asset Classes
Balance equities with bonds, real estate, commodities, and cash equivalents. Defensive portfolios thrive on allocation, not prediction.
Step 3: Focus on Cash Flow
Income-producing assets — like dividend ETFs, REITs, or Treasury bills — can provide steady returns even when prices fluctuate.
Step 4: Add a Hedge Layer
Consider gold or short-duration Treasury ETFs as volatility buffers. For advanced investors, options-based hedging (like covered calls) can reduce drawdowns.
Step 5: Limit Speculative Exposure
Now’s the time to trim high-volatility positions (like small-cap tech or speculative crypto) — not sell out completely, but rebalance toward stability.
⚖️ 4. Risk vs. Reward
Pros:
Reduces portfolio swings and emotional decision-making.
Generates steady income through dividends and yield.
Provides flexibility to buy discounted assets when markets calm.
Cons:
May underperform during sharp rebounds.
Can limit upside if markets recover faster than expected.
Requires periodic rebalancing to stay effective.
🚀 5. How to Take Action
Beginner Investors:
Shift 10–20% of your portfolio into dividend-paying ETFs or high-yield savings accounts.
Avoid panic selling; focus on quality over quantity.
Intermediate Investors:
Add bonds, gold, or REITs for diversification.
Rebalance quarterly — especially if your growth assets fell sharply last week.
Keep 5–10% in cash for buying opportunities.
Advanced Investors:
Use covered calls or protective puts to hedge volatility.
Explore low-volatility ETFs or defensive factor funds.
Consider rotating into undervalued defensive sectors while trimming cyclical exposure.
💬 Final Word
Markets may be rattled, but opportunity lives in discipline. Defensive investing isn’t about retreating — it’s about positioning yourself to thrive when others panic.
This week, your best move isn’t to outguess the market — it’s to outlast it.
That’s All For Today
I hope you enjoyed today’s issue of The Wealth Wagon. If you have any questions regarding today’s issue or future issues feel free to reply to this email and we will get back to you as soon as possible. Come back tomorrow for another market update, and snapshot. I hope to see you. 🤙
— Ryan Rincon, CEO and Founder at The Wealth Wagon Inc.
Disclaimer: This newsletter is for informational and educational purposes only and reflects the opinions of its editors and contributors. The content provided, including but not limited to real estate tips, stock market insights, business marketing strategies, and startup advice, is shared for general guidance and does not constitute financial, investment, real estate, legal, or business advice. We do not guarantee the accuracy, completeness, or reliability of any information provided. Past performance is not indicative of future results. All investment, real estate, and business decisions involve inherent risks, and readers are encouraged to perform their own due diligence and consult with qualified professionals before taking any action. This newsletter does not establish a fiduciary, advisory, or professional relationship between the publishers and readers.
