The Wednesday Weekly
Financial Market Insight January 7th, 2026
Weekly Market Insight
Welcome to our weekly market update. This newsletter is designed to provide you with current market data, investment insights, and educational information about market trends and strategies. The content herein represents our observations and analysis of market conditions and is intended for informational and educational purposes only. It does not constitute personalized investment advice or a recommendation for any specific security or strategy.
Major Market Indexes
Closing Price as of 01/06/2026
The Strong Tower Difference
Ask Yourself…
What do you own?
Why do you own what you own?
Do you know what you’re truly paying for your investment management and advice?
If you can’t answer these three questions, watch this video.
As mentioned in earlier Newsletters, we are going to spend time, expanding our explanations and “drilling” down into the 3 questions, that as investors, everyone should want to know:
1. What Do You Own?
Now is the time to ask yourself this question. The markets have continued to be uncharacteristically strong for an extended period.
What happens when they are not? How will your current strategy be affected if you are not overweighted or allocated in the stronger more favored sectors?
Is raising cash ever been a part of your investment strategy conversations? Markets have volatility. Sectors rotate in and out of favor. Will you be ready?
Current Items of Interest
The 80/20 Rule
While many investors may not be familiar with the Pareto Principle by name, the concept is commonly understood as the 80/20 Rule: the observation that a smaller portion of inputs often accounts for a larger portion of outcomes.
In the context of investing, particularly when using a relative strength or momentum-based framework, this concept can be applied to market leadership. At various points in time, market returns may be driven by a relatively narrow group of sectors or securities. By emphasizing exposure to areas of the market demonstrating stronger relative performance and reducing exposure to weaker areas, this approach seeks to participate in prevailing market trends. Sector leadership can change, and allocations are subject to ongoing review and adjustment based on market conditions.
Top-Down Investing vs. Bottom-Up
At STWM, we utilize a top-down investment approach, beginning with an analysis of overall market conditions. From there, we identify areas of relative strength, narrow our focus to broad market sectors, then to sub-sectors, and ultimately to individual security selection. We do not emphasize a bottom-up approach that starts with individual company financials. While some companies may appear attractive on a standalone basis, sector and market conditions can influence performance. When a sector is experiencing unfavorable conditions, companies within that sector may face headwinds regardless of individual fundamentals.
Our process seeks to align portfolios with favorable market and sector trends while avoiding areas showing sustained weakness. We actively monitor sector participation and price behavior, as increasing demand within a sector may signal improving conditions. Sectors demonstrating renewed strength may be evaluated for addition into our investment models. This approach is designed to remain adaptable to changing market conditions.
Current Strong Tower Model Allocation
Clients Only — Allocation as of 01/06/2026
Bottom Line:
50.50% of our model is in currently in the top 4 Industry Groups.
93.50% of our model is currently in the top 8 Industry Groups.
About Us
At Strong Tower Wealth Management, we offer comprehensive wealth management services using a goal-focused and holistic approach that considers each client’s overall financial situation, including their family, circumstances, and objectives. Our services include investment management, insurance planning, and estate planning coordination, provided with an emphasis on clarity and transparency.
Not a client yet? We invite you to schedule an introductory meeting with Brett to discuss your financial goals and learn more about how we can support you.
Happy New Year!
Brett Lewis
Founder / Managing Director
Strong Tower Wealth Management
www.strongtowerwealthmanagement.com