How Trump's affordability push is prompting Wall St. to rethink what's next for tariffs.

As investors anxiously wait for the U.S. Supreme Court to issue a ruling on the bulk of President Trump’s tariffs, some on Wall Street have started to question whether high tariff levels fit with the White House’s new affordability push

Go here for the rest of the story.

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Elon Musk predicts saving for retirement will be 'irrelevant' in 20 years: 'Anyone can have whatever they wish'.

"...Musk believes society could move towards a system where scarcity is no longer a major problem. In such a world, goods and services would be produced in vast quantities at very low cost. This, he says, could make it possible for everyone to receive a “universal high income”, ensuring a comfortable standard of living for people across all income groups."

For the rest of the article race over to here.

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Evolution of a Model Stock Portfolio

​According to Hendrik Bessembinder of Arizona State University, he claims that, of all American firms from 1925 to 2023, less than 3% of stocks account for all of the increase in shareholder wealth during this 100 year period. This seems to be a little hard to believe but consider the following. 

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Since 2007, Apple AAPL is up 4,043%, Nvidia NVDA 19.920% and Netflix NFLX 24,807%. 

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Wow!

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​Let's face it, we all want the best stocks and we want them to make us rich. So how do you do that? 

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Related: Model Portfolio core holdings.

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Crave Investor has been studying big winners for the purpose of establishing a strategy for subscribers to operate a model portfolio. The process has several key points including,

• Identification of top performing stocks.

• screening of stocks to make the cut for holdings in a model or core portfolio.

• how to execute buys and sells of stocks in the model portfolio.

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This has been going on for a relatively long time and surprisingly, it has not been easy. You'd think it would be a relatively simple exercise but there are some challenges to running this strategy. 

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The primary issue may be in the buy back of a core holding. Buy back means the intended buy of the stock that has been sold with the intention of buying it a lower price. Now, if you are wondering why you would sell a core holding the answer lies in the math. Even the greatest performers go into corrections and they all suffer significant losses during bear markets. Most top performing stocks fall 30-40% during a bear market and in some cases as much as 45%. 

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A premise in the strategy is to take advantage of wide price swings to build the portfolio. 

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Riding stocks down doesn't build portfolios and furthermore, what if it keeps going lower and doesn't recover? That's the primary issue with holding a stock long term (holding includes buys and sells along the way). 

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Netflix NFLX was one of the first stocks for consideration as a core holding in the model portfolio strategy. 

In the ten year chart below notice the time period in the red box. It's a huge decline with some very heavy selling. It's a clear sign big money wanted out and they were bound to stay out as the stock ultimately plunged over 75%.

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Historically, stocks that fall over 45% rarely return as out performers. 

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Suppose that you had been targeting NFLX as a buy following the sell signal. After it fell 50% you might have been licking your chops and decided to step in, executing a buy at a price in the $35-$38/share range. You would probably have assumed the strategy is working great and thanked the bears for pushing the stock down by such as large amount. But on April 22nd 2022 the stock fell 35% in one day! Now what? (see below).

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​In real time, there is no way someone could assume the stock was going to bottom out soon and then go up by a factor of seven times. In this scenario, a defensive strategy is needed to protect capital and reposition to recoup the loss. 

Lululemon LULU is a real time case study in a stock that is in the model portfolio, but it has fallen approximately 67% from the  December 2023 high. That's two years ago and furthermore, many stocks logged big gains in the stock market rally from April 2025. Why tie capital up when better choices are obvious?

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The reality is eventually the greatest stocks become fallen stars. So what do you do? How do you keep capital employed in the market's biggest winners on a long term basis?

 

Happy New Year and may 2026 bring a year of hope and success in and out of the stock market. ​​​​​​​​​​​​​

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