October 6, 2025
Welcome Back,
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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
💡 Weekly Theme: “Building Wealth Through Strategic Diversification”
This week, we’re talking about the cornerstone of long-term investing success — diversification.
Not the kind that just spreads your money thinly across random assets, but intentional diversification — balancing opportunity and protection in a way that builds consistent wealth through changing market cycles.
🔍 Why This Matters
Markets Are Rotating: Big tech cooled last week while small caps, metals, and energy gained. A diversified investor benefits from that rotation instead of being blindsided by it.
Volatility Is Creeping Back: As inflation data and earnings season approach, single-sector bets carry higher risk. Diversification cushions against those shocks.
Growth Is Fragmented: With crypto, commodities, and real estate moving at different paces, the next wave of returns likely won’t come from just one asset class.
🧭 The Strategy: The “3-3-3” Approach
Think of diversification not as owning “a bit of everything,” but as owning the right mix of things that behave differently.
Here’s a simple structure — the 3-3-3 Portfolio:
3 Core Long-Term Assets
Stocks (broad ETFs or blue-chip companies)
Bonds or CDs (income and stability)
Real estate (physical or REITs)
3 Growth Engines
Crypto (Bitcoin, Ethereum, or a balanced basket)
Commodities (gold, silver, oil, or energy funds)
Private/startup or alternative investments
3 Safety Nets
Cash or high-yield savings (for flexibility)
Defensive sectors (utilities, healthcare)
Risk management tools (stop-loss orders, hedges, or diversification by geography)
The key: Rebalance quarterly to maintain weightings as markets move. Diversification only works if you manage it actively.
⚖️ Risk vs. Reward
Rewards:
Reduces exposure to shocks in any single market.
Builds smoother returns over time.
Lets you participate in multiple opportunities without overcommitting.
Risks:
Over-diversification can dilute returns.
Some correlations (like stocks and crypto) can tighten in crises.
Requires periodic review to stay balanced.
Diversification isn’t about avoiding loss entirely — it’s about making volatility survivable so compounding can do its work.
🧩 How to Take Action
For Beginners:
Start with a core ETF portfolio (like S&P 500 + total bond market).
Add a small % of commodities or crypto for exposure — keep it under 10% of total holdings.
Set a reminder to check allocations every three months.
For Intermediate Investors:
Layer in sector-specific ETFs (energy, tech, healthcare).
Add real estate exposure via REITs or fractional platforms.
Use cash positions strategically to buy dips.
For Advanced Investors:
Explore alternatives — private credit, startups, or structured income.
Employ hedging strategies using options or short ETFs.
Consider diversifying geographically with exposure to emerging markets or foreign bonds.
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.
