Today’s market brings new challenges for investors.
World financial markets are constantly changing and society is more complex, but human nature typically remains constant. Many investors spend time worrying and often make decisions based on emotion.
In our opinion, greater vigilance and clear decision making are demanded in today’s market climate, which requires a more active approach than conventional buy and hold strategies.
The key is being able to recognize impending trends as early as possible by observing potential changes and preparing for their arrival.
Many people simply invest through predetermined allocation programs hoping the market will conform to their goals, effectively surrendering control to the market. It is more prudent to adjust to changing market conditions, instead of simply trusting the future to set allocations.
Tuttle Tactical Management’s dynamic approach to investing creates opportunity regardless of market direction.
Tactical Investment Guidelines and Goals:
1. Guard against major long-term loss
Not losing money is just as important as making money. Major long-term loss can occur during a sustained market downtrend, causing a loss of previous gains. You must be able to move into the right investments or exit the market completely during a long downturn. This helps to preserve growth and protect capital for future opportunities.
2. Have cash available for major market opportunities
It is necessary to have cash available when market opportunities occur, such as when a long-term downtrend has ended and new market direction is confirmed. By following the first guideline, previous growth can be safeguarded and provide cash to take advantage of market opportunities.
3. Take advantage of recognized opportunities
Just as important as when to invest, is what to invest in. Being aware of which sectors offer solid opportunity and when to position yourself in them is critical.