Tactical Investment Management Basics
Tactical investment management is an active management system that attempts to stay in harmony with market trends while protecting against large loss. Two goals of every tactical process should be to: 1) grow portfolios, and 2) not lose money.
In our opinion, today’s economic market is more complex than ever before. Now, the investor needs to be able to deal with the rapid speed of change, information overload and globalization. Our philosophy is that in today’s market the best way to achieve growth while protecting what you’ve earned is through tactical investment management. Take a closer look at what tactical investment management offers with regard to three of the greatest challenges to the investor today.
Sector rotation
Sector rotation is a term normally applied to stock market trading patterns.[1] In this context, a sector is understood to mean a group of stocks representing companies in similar lines of business.
For example, an investor or trader may describe the current market movements as favoring basic material stocks over semiconductor stocks by calling the environment a sector rotation from semiconductors to basic materials.
Sector Rotation Models exist primarily to help investors identify and participate in new trending sectors of the stock market. A sector rotation investment strategy is not a passive investment strategy like indexing, and requires periodic review and adjustment of sector holdings. Tactical asset allocation and sector rotation strategies require patience and discipline, but have the potential to outperform passive indexing investment strategies.
The advisory extends a free Tactical Management Basics for your learning pleasure and is provided on an informational basis only. To receive your free copy, download the attached PDF. Adobe reader is required. Go to www.adobereader.com if required.
Your comments or inquiry are welcomed and I can be emailed at; mgreen1@greenadvisory.com