Tactical Investment Strategy
In high-risk markets, a tactical investment strategy attempts to protect capital by reducing equity exposure and investing in cash and cash equivalents.
Why Tactical Investing?
A Bear Market can have a deep impact on a portfolio. As losses grow, the return needed to break even compounds at an even faster rate. If you invested in the S&P 500 during the Financial Crisis Bear Market, you would have suffered losses of over 50%, which means you would need a 100% return in order to break even. Thus, a Tactical Portfolio aims to be lightly invested during Bear Markets.
On the other hand, a Tactical Portfolio aims to be invested in equities for significant price appreciation when risks have subsided.
If you suffered losses of over
you would need a
return in order to break even
Implementing a Tactical Approach
Our research team daily evaluates numerous technical, fundamental, and sentiment indicators to determine risk vs. reward within the market. Through this evaluation, we seek to reduce exposure prior to high-risk periods, such as the 2000-2002 Tech-Bubble and the 2008 Financial Crisis, while growing capital during low-risk markets.
Through the use of technical and fundamental research, we aim to identify investments that we believe have the most potential for growth within our clients’ portfolios.