Tactical Asset Management

What is Tactical Asset Management?

Investment managers are aware of the relationships that exist between financial market performance and various economic data and trends. By utilizing computers to generate proprietary mathematical models, active asset managers look for long-term trends in the continually fluctuating stock and bond markets to detect periods of sustainable up or downward movement. During these perceived up or downward trends, the models generate “buy” or “sell” signals directing the asset manager to position investments in equities, bonds, money market funds, or alternative assets to manage your portfolio risk.

We take a proactive approach to investing and have a plan for both strong and poor markets. Tactical Asset Management is a proactive risk-managed approach with a goal of providing our clients with returns superior to indexes or passively managed accounts.

Key Components Include:

  • Establishing investment guidelines
  • Selecting portfolio configuration
  • Daily portfolio monitoring with no predetermined holding period for investments
  • Disciplined shifting of capital between asset classes in response to changing market conditions

Advantages to Tactical Asset Management

  • Allows you to experience the potential of superior returns of the stock market with less volatility than other investments.
  • Seeks to avoid declining markets and preserve capital for investment during rising markets.
  • Reduces risk of fluctuation in an investment account’s value while potentially achieving higher returns than other investments with similar risk.
  • Constant monitoring of domestic and international markets provides scientific and objective analysis for our active reallocation of assets to control risk with the objective of maximizing profits. Reallocation involves changing asset categories and percentages as changing economic circumstances dictate.

Why Tactical Asset Management Works

With a principle objective of avoiding major market price declines, Tactical Asset Management allows you to minimize risk during market declines while participating in the market’s strong growth periods.

By avoiding weak periods in the market while participating in the strong, investors can experience superior returns over buy-and-hold strategies, a passive investment approach focused exclusively on long-term goals.

There have been fifteen bear markets between 1929 and 2009, defined by periods where the S&P has declined by 20% or more.

Excluding the 1929 market crash, the average loss has been 36% and it has taken an average of 4.2 years for the S&P to return to break even.

Traditional vs. Roth IRA

Traditional vs. Roth IRA

One or the other? Perhaps both traditional and Roth IRAs can play a part in your retirement plans.
Learn More
Making Your Tax Bracket Work

Making Your Tax Bracket Work

Have you explored all your options when it comes to managing your taxable income?
Learn More
The Half Million Dollar Baby

The Half Million Dollar Baby

The true cost of raising a child may be far more than you expect.
Learn More

Find Your Perfect Fit

Thank you!