Most 401k's should have an SP500 index or a large cap index. 1. The S&P 500 already represents roughly 80% of total U.S. market capitalization, so holding it is a mathematically sound way to capture the long-term growth of corporate America. 2. Expense ratios on S&P 500 index funds are near zero. When combined with tax-deferred compounding inside a 401(k), that low drag produces a structurally higher geometric return over time. 3. The index includes 500 of the largest companies across technology, healthcare, industrials, finance, and consumer sectors and effectively spreads risk while tracking overall economic output. 4. Corporate revenues and profits tend to rise with nominal GDP and inflation. Over decades, this acts as a self-correcting inflation buffer. 5. For most investors, simplicity beats optimization. Automating 401(k) contributions into an S&P 500 index reduces the temptation to time the market ensuring consistent accumulation regardless of short-term volatility.

Mid-cap stocks (typically companies with market caps between $2B–$10B) represent the growth engine of the U.S. economy. Historically, mid-caps have outperformed both large- and small-caps on a risk-adjusted basis. Mid-caps exhibit lower volatility than small-caps but greater upside capture than large-caps during economic expansions, improving a portfolio’s Sharpe ratio. Many mid-cap indexes are more evenly distributed across industrials, tech, and consumer sectors, providing a more accurate reflection of domestic economic activity. Low-cost ETFs tracking mid-cap benchmarks (like the S&P 400 or Russell Midcap Index) now offer exposure with expense ratios near 0.05%.

1. VOOG tracks the S&P 500 Growth Index, concentrating on large-cap U.S. companies with strong earnings and revenue growth potential. 2. VOOG’s growth tilt results in heavier allocations to mega-cap tech and AI leaders like Apple, Microsoft, NVIDIA, Amazon, and Alphabet, giving it more AI exposure than a broad fund like VOO. 3. This heavier allocation in technology, consumer discretionary, and communication services, gives investors more exposure to high-growth industries. 4. With an expense ratio of 0.10%, VOOG remains cost-efficient compared to most actively managed growth funds. 5. Growth stocks historically outperform in strong markets but can be more volatile and underperform during downturns, making VOOG a higher-risk, higher-reward long-term holding.

1. VOO holds 500 of the largest U.S. companies across all major sectors, giving you exposure to the overall U.S. economy instead of relying on a single stock or industry. 2. With a 0.03% expense ratio, VOO minimizes fee drag, which compounds into a major advantage over decades. 3. Unlike leveraged or actively managed funds, VOO simply tracks the S&P 500, avoiding strategy decay or manager risk. 4. U.S. large-cap equities have historically compounded wealth at 8–11% annually, making VOO a strong core holding for long-term portfolios. Tax rates are in the US are among the lowest of any major economy in the world. The US will continue to dominate the global economy for years to come. For this reason I use VOO as a savings account, buying a little more each week.

BRK.B compounds capital through operating cash flows rather than financial engineering. Earnings are internally reinvested, avoiding dividend drag and maximizing tax efficiency in long horizons. The balance sheet provides downside resilience during recessions while preserving upside participation. Long-term returns track productive economic output, aligning well with retirement time scales.

Positives: 1. Enhanced Exposure to the S&P 500 Over long periods, the S&P 500 has been a strong performer. A 2× leveraged version could magnify gains if markets trend upward, potentially accelerating portfolio growth. In tax-advantaged accounts like IRAs, you avoid paying yearly capital gains taxes on the higher turnover leveraged ETFs generate. 2. Compounding in Bull Markets In long, steady bull markets, SPUU’s daily compounding can result in more than 2× the return of SPY (plain S&P 500 ETF). Retirement accounts, with long horizons benefit from this multiplicative potential. 3. Simplicity vs. Options/Leverage Instead of managing options or margin, SPUU lets you “set and forget” leveraged exposure with use of this ETF. Negatives: 1. Daily Reset & Volatility Decay SPUU resets daily. In volatile, sideways markets, this causes decay meaning long-term returns may underperform 2× the index. For example, if the S&P chops around up and down, SPUU will perform badly even if the index ends flat. 2. Higher Fees & Tracking Error SPUU charges 0.63% expense ratio (vs. 0.03% for SPY or VOO). 3. Active Management Required (This can be easily DIY with rules) Leveraged ETFs are built for traders, not for “buy and hold.” If you leave this for decades until retirement, you’re betting heavily on persistent bull markets. Rebalancing to capture gains in bull markets and dollar cost back in during bear markets is key to outperforming the market. Use the coaching request if you'd like to take time to see if this is the right approach for you.

BITX provides high beta exposure to Bitcoin, increasing portfolio convexity if digital assets continue institutional adoption. Position sizing limits downside while allowing outsized impact during sustained uptrends. Suitable only as a satellite allocation where volatility is acceptable and time horizon is long.

The initial leverage advantage from liquidity expansion and rate-cut expectations has been realized since April 2025. Current conditions show diminishing marginal returns on leveraged equity exposure. SPXL’s performance is sensitive to daily compounding. With reduced market volatility, incremental gains are non-linear and decay risk rises, reducing long-term efficiency. Recent upward pressure in Treasury yields and tightening liquidity indicate a less favorable macro environment for leverage-driven equity products.

1. Defensive Compounding Core: BRKU operates as a low-volatility compounder with diversified cash-flow engines. Its portfolio structure is anchored in insurance float, energy infrastructure, and stable equity holdings. This acts as a natural volatility dampener within a leveraged framework. 2. Liquidity Buffer and Optionality Source: High cash reserves and disciplined capital allocation by Berkshire create latent optionality. When markets correct, BRKU historically redeploys liquidity efficiently, offering exposure to contrarian inflection points without direct market timing. 3. Real-Asset Correlation: Holdings in energy, industrials, and insurance correlate positively with nominal GDP growth and inflation persistence. Increasing allocation strengthens exposure to tangible-asset earnings during cyclical or inflationary phases. 4. Mean-Variance Optimization Role: Adding to BRKU enhances portfolio stability by lowering aggregate volatility while preserving long-term compounding rate. The position functions as a counter-leveraged anchor balancing higher-beta instruments such as SOXL or TQQQ. I plan to continue increasing my holdings in BRKU and SPUU through time.

Small-cap valuations remain historically discounted relative to large-cap indices. Current price-to-earnings and price-to-book spreads imply latent upside once capital rotation resumes. TNA exhibits higher beta to liquidity inflection points. When real rates compress or credit conditions ease, small caps respond with amplified momentum. This is a desirable characteristic for leveraged exposure. TNA benefits disproportionately from domestic economic expansion and manufacturing upticks. As fiscal stimulus and industrial re-shoring accelerate, the small-cap segment offers torque to GDP growth trends. At 2% allocation, downside impact is limited, but potential convex upside is significant. Position expansion during volatility spikes would enhance exposure at a lower effective volatility cost. I will continue watching macro trends and look to expand this holding when the macro trends align. Current holding functions as a placeholder for future scaling. Expansion will be triggered by confirmation of liquidity reacceleration or breakout above long-term moving averages. Optimizing entry precision to maintain visibility at this point.

TQQQ amplifies exposure to long-duration technology and innovation assets. With secular trends in AI, cloud infrastructure, and semiconductors driving index composition, the long-term expected growth rate justifies sustained leverage. Nasdaq valuations are highly sensitive to real rate movements. When Treasury yields decline or the Fed pivots dovish, TQQQ translates liquidity expansion into outsized compounding efficiency relative to SPXL. Technological acceleration drives multiple compression cycles followed by explosive rebounds. TQQQ allows participation in these rebounds with high delta leverage once macro headwinds subside. A 5% weighting optimizes exposure-to-risk ratio for now. Maintaining portfolio convexity without excessive drawdown potential. The position functions as a controlled high-exposure component within a diversified structure. Nasdaq remains in a confirmed long-term uptrend with superior earnings momentum relative to small- and mid-cap indices. Retaining exposure aligns with the trend-following aspect of Jack’s macro-leverage model.

Holding some cash and allocating in weekly

Reasoning 1. VOO holds 500 of the largest U.S. companies across all major sectors, giving you exposure to the overall U.S. economy instead of relying on a single stock or industry. 2. With a 0.03% expense ratio, VOO minimizes fee drag, which compounds into a major advantage over decades. 3. Unlike leveraged or actively managed funds, VOO simply tracks the S&P 500, avoiding strategy decay or manager risk. 4. U.S. large-cap equities have historically compounded wealth at 8–11% annually, making VOO a strong core holding for long-term portfolios. Tax rates are in the US are among the lowest of any major economy in the world. The US will continue to dominate the global economy for years to come. For this reason I use VOO as a savings account, buying a little more each week.

1. VOOG tracks the S&P 500 Growth Index, concentrating on large-cap U.S. companies with strong earnings and revenue growth potential. 2. VOOG’s growth tilt results in heavier allocations to mega-cap tech and AI leaders like Apple, Microsoft, NVIDIA, Amazon, and Alphabet, giving it more AI exposure than a broad fund like VOO. 3. This heavier allocation in technology, consumer discretionary, and communication services, gives investors more exposure to high-growth industries. 4. With an expense ratio of 0.10%, VOOG remains cost-efficient compared to most actively managed growth funds. 5. Growth stocks historically outperform in strong markets but can be more volatile and underperform during downturns, making VOOG a higher-risk, higher-reward long-term holding.

BITX provides high beta exposure to Bitcoin, increasing portfolio convexity if digital assets continue institutional adoption. Position sizing limits downside while allowing outsized impact during sustained uptrends. Suitable only as a satellite allocation where volatility is acceptable and time horizon is long.

Positives 1. BRKU targets 200% of the daily return of Berkshire Hathaway Class B (BRK.B). 2. Because BRK.B owns a wide range of insurance, energy, transportation, and industrial businesses, BRKU gives aggregated exposure to these under a unique leveraged structure. 3. If macro themes shift toward inflation, real-assets, or industrial growth, then BRKU’s leverage could amplify that rotation. 4. Launched Dec 11 2024, BRKU is relatively new and early owners may benefit from latent upside if the structure gains traction and BRK.B performs well. Negatives 1. Expense ratio around 0.97% 2. BRKU is designed to deliver 2× the daily return of BRK.B. Holding it for longer periods exposes the investor to compounding risk; results may diverge materially from simply 2× multi-day performance. 3. Because BRKU tracks only BRK.B, it lacks diversification across sectors or themes. If BRK.B underperforms, the leveraged loss could be significant. 4. As a new and small fund (AUM ~ $70-90 M) the liquidity may be thinner, bid/ask spreads wider, and operational risks higher than larger funds.

Positives: 1. Enhanced Exposure to the S&P 500 Over long periods, the S&P 500 has been a strong performer. A 2× leveraged version could magnify gains if markets trend upward, potentially accelerating portfolio growth. In tax-advantaged accounts like IRAs, you avoid paying yearly capital gains taxes on the higher turnover leveraged ETFs generate. 2. Compounding in Bull Markets In long, steady bull markets, SPUU’s daily compounding can result in more than 2× the return of SPY (plain S&P 500 ETF). Retirement accounts, with long horizons benefit from this multiplicative potential. 3. Simplicity vs. Options/Leverage Instead of managing options or margin, SPUU lets you “set and forget” leveraged exposure with use of this ETF. Negatives: 1. Daily Reset & Volatility Decay SPUU resets daily. In volatile, sideways markets, this causes decay meaning long-term returns may under-perform 2× the index. For example, if the S&P chops around up and down, SPUU will perform badly even if the index ends flat. 2. Higher Fees & Tracking Error SPUU charges 0.63% expense ratio (vs. 0.03% for SPY or VOO). 3. Active Management Required (This can be easily DIY with rules) Leveraged ETFs are built for traders, not for “buy and hold.” If you leave this for decades until retirement, you’re betting heavily on persistent bull markets. Re-balancing to capture gains in bull markets and dollar cost back in during bear markets is key to outperforming the market.

TQQQ amplifies exposure to long-duration technology and innovation assets. With secular trends in AI, cloud infrastructure, and semiconductors driving index composition, the long-term expected growth rate justifies sustained leverage. Nasdaq valuations are highly sensitive to real rate movements. When Treasury yields decline or the Fed pivots dovish, TQQQ translates liquidity expansion into outsized compounding efficiency relative to SPXL. Technological acceleration drives multiple compression cycles followed by explosive rebounds. TQQQ allows participation in these rebounds with high delta leverage once macro headwinds subside. A 5% weighting optimizes exposure-to-risk ratio for now. Maintaining portfolio convexity without excessive drawdown potential. The position functions as a controlled high-exposure component within a diversified structure. Nasdaq remains in a confirmed long-term uptrend with superior earnings momentum relative to small- and mid-cap indices.

Holding some cash for future trades.

BITX 1/15/27 42C - 5 contracts - $6.50 = $3250 The option defines maximum loss while preserving multi-year upside if Bitcoin adoption accelerates. Regulatory clarity from the GENIUS bill reduces downside risk without capping upside. The 2027 expiry matches the expected lag between policy change and capital inflows. If Bitcoin trends upward, convexity dominates decay; if not, loss is bounded.

MSTY 1/15/27 13C - no longer recommend purchase. I will look to close the position over the next 6 months.