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Ripple Effect

Mind Your Allocation In 2026

Addison WigginAddison Wiggin

December 19, 2025 • 2 minute, 7 second read


asset allocation

Mind Your Allocation In 2026

For only the 12th time in over a century, stocks are about to close out a third year in a bull market. The longest bull run – a five-year stretch – occurred during the run-up to the tech bubble 1995-1999.

Today, institutional and retail investors alike are “all in” on stocks.

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Retail stock allocation is near all-time highs (Source: AAII)

According to the American Association of Individual Investors, the average retail investor has about a 70% allocation to stocks. That’s well over the traditional 60/40 split between stocks and bonds. Even a 60/40 allocation ignores real estate, gold, collectibles, and private assets.

A pullback in the 10% range – which is likely in any given year – will prompt investors to scream as if it’s the end of the world.

Our “panic now, avoid the rush” strategy is simple.

Take tech profits off the table, raise some cash, and focus on industry-leading companies that pay dividends. Roll those dividends up and use compounding to your overall portfolio’s advantage.

In other words, enjoy the bull market… while it lasts.

~ Addison

P.S. Yesterday, Grey Swan Live! with Dan Amoss allowed us to end our intriguing off-the-books conversations on a high note for 2025.

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Dan opened up his GAAP accounting notes and revealed why and how he believes the AI capex spending boom will likely bust. With Dan’s characteristic ease and clarity, we sifted through some of the more arcane accounting methods that companies can use during boom times to keep up appearances for Wall Street analysts. Perhaps, more to the point, he showed his own technique for turning those tedious insights into actionable and quick hit gains using options.

Near the end of the session, Dan shared a few bullish trades he’s sitting on in natural resources, mining and precious metals – a sector he expects is in “the second or third inning” of its own bull run. There’s a lot more to come in 2026.

When we return with Grey Swan Live! in early January, we encourage you to join us. The live Zoom calls have turned out to be one of the greatest benefits of being a member of Grey Swan Investment Fraternity and a highlight of our week each week.

Members can access the 2026: Something Wicked This Way Comes episode of Grey Swan Live! with Dan Amoss replay in the members-only archive of the Grey Swan Investment Fraternity site here.

If you have requests for new guests you’d like to see join us for Grey Swan Live!,  or have any questions for our guests, send them here.


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