The Wednesday Weekly
Financial Market Insight February 4th, 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 02/03/2026
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.
Current Items of Interest
Process, Process, Process.
Nearly every advisor or planner talks about their investment process, but it’s worth taking a closer look at what that actually means.
Key questions clients should understand include:
Who conducts the research?
How are allocation strategies determined?
How are percentage allocations set?
Who decides what to buy or sell, and when?
Just as importantly, who decides what not to buy or sell, and when?
And ultimately, who is the decision-maker on your investment account?
In many cases, the answer to these questions is not the advisor you meet with regularly, but an external committee or third-party investment team. For some investors, this structure may be perfectly acceptable. For others, it may raise questions about accountability, flexibility, and how decisions are made, particularly during challenging market environments.
Recent years have been strong for financial markets, supported by factors, such as technological innovation, enthusiasm around artificial intelligence, and shifts in monetary policy. But markets do not always move in straight lines. When conditions change, the structure and discipline of an investment process can become especially important.
At Strong Tower Wealth Management, our approach is straightforward and transparent:
We conduct the research.
We determine allocation strategies and position sizes.
We make the decisions regarding what to buy, sell, or hold, and when to take no action at all.
And our clients speak directly with the decision-maker responsible for their investment portfolios.
While no process can eliminate risk or guarantee outcomes, clarity around who is making decisions, and how those decisions are made, can be an important part of building long-term confidence in an investment relationship.
Cut Your Losses…to Enhance Your Return
A disciplined trend-following, (or relative strength/momentum) methodology, is one of the most proven ways to cut losses faster and enhance long-term returns. Here’s why it works, and why it’s so hard for most investors to stick with:
Sell losers early (Risk Management first)
Trend-based rules, like selling when an investment falls below a long-term moving average or breaks relative strength, forces you to exit deteriorating positions before losses increase. Small losses are recoverable; big losses are not.
Let winners run
Rather than selling because something “feels expensive or overbought,” trend and relative strength strategies stay invested as long as price action confirms strength.
Remove emotion from decisions
Fear and hope can be expensive. Rules-based methodologies replace “gut instinct” with objective buy or sell signals, helping investors avoid holding losers too long or selling winners too early.
Adapt to changing market leadership
Markets rotate. What worked last year often doesn’t work next year. Relative strength approaches reallocate toward the strongest sectors, styles, or asset classes while avoiding persistent laggards.
Historically improves drawdowns
Across decades of market cycles, disciplined trend-following has shown the ability to:
Reduce maximum drawdowns
Improve risk-adjusted returns
Shorten recovery times after bear markets
Bottom line:
Cut risk when trends weaken. Add exposure when strength persists.
That combination: loss control plus participation in upside trends, is what enhances returns over full market cycles, even if it means being early on exits or late on entries from time to time.
Current Strong Tower Model Allocation
Clients Only — Allocation as of 02/03/2026
Bottom Line:
51.00% of our model is in currently in the top 4 Industry Groups.
96.00% 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 assessment with Brett to discuss your financial goals and learn more about how we can support you.
Brett Lewis
Founder / Managing Director
Strong Tower Wealth Management
www.strongtowerwealthmanagement.com