A Practical Way to Stay Invested Without Losing Your Shirt
Whether the market is running hot, breaking down, or just moving sideways, one of the biggest challenges for any investor is figuring out how to stay involved without taking on too much risk.
That’s where the 40-40-10-10 model comes in.
This is a simple, flexible way to think about capital allocation — built to keep you engaged, protected, and positioned for opportunity without trying to predict every move.
In this session, I walk through how I use this framework in real time — what each part of the model is designed to do, how I adjust as conditions change, and why this structure works in both bull and bear markets.
What We Cover
- How I break my capital down into four clear buckets — and why each one serves a specific purpose
- What I consider a “core” position, and what gets rotated out as momentum shifts
- How I think about risk in the speculative bucket — and why that 10% isn’t where you blow up your account
- What’s in the volatility hedge bucket, and how I use it to stay sane when markets get rough
This model gives me room to be active without swinging for the fences — and helps keep emotion out of the decision-making process.
Here’s the Breakdown
- 40% Core Holdings
Long-term positions you'd hold through a full market cycle. Stable, durable names with strong fundamentals.
- 40% Tactical / Risk-On
Rotational trades based on what’s working right now — think sectors, trends, or macro-driven moves.
- 10% Speculative
High-upside ideas with well-defined risk. This is where you aim for outperformance without risking your whole portfolio. - 10% Volatility Hedge
A slice of the portfolio dedicated to protection — strategies or assets that benefit when the market sells off or volatility spikes.
This isn’t a rigid formula. It’s a way to think clearly when the market isn’t making it easy.
You can revisit this anytime as a baseline for your positioning — and adjust based on what the market’s giving you.
If you want to see how this model gets applied in real time, join me live every weekday morning at 8:45 AM ET for a free market breakdown and daily positioning update.
Click here and sign up to never miss a live session.
Stay Positive,
Garrett Baldwin