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:
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.