YTD: S&P -18.16%; Tactical Growth -1.58% (Manager Explains How)

Webinar—On Recording

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What is a “tactically” managed strategy?

A broad definition is that a tactical strategy is one where money is moved between different asset classes (or different stocks in an asset class) to take advantage of pricing anomalies. Most can go to cash (and some can short or go inverted) if their signals indicate that’s the best way to AVOID large downturns.

Five Tactical Strategies You Should Review

With the market in a tailspin, maybe it’s time advisors who DON’T use tactical strategies should consider doing so (which is the reason for this newsletter)?

While the title of the newsletter is about a tactical “growth” strategy, the firm that offers it also offers conservative, moderate conservative, moderate, and moderate growth tactical strategies.

Here are the numbers for three of them vs. their benchmark YTD (as of May 19th):

Hindsight is 20-20, but I’m sure your clients wish some of their assets in such strategies.

Tactical usually lags in an up market. See the same three strategies going back 10 years:

Two of the three did better than the benchmarks and while the aggressive didn’t beat the S&P 500, the OnPointe Risk Score of the strategy was only 35 vs. 72 for the S&P 500 (meaning it generated very good returns with significantly less risk!).


Again, I’ll admit that most tactical strategies are NOT very good. But when you find good ones, you can really save yourself and your clients a lot of sleepless nights.

Oh, and by the way, if you consider yourself a fiduciary, don’t you have a duty to review these types of strategies for potential use in your client’s portfolios?  Hmm…something to think about (and a reason to sign up to attend the webinar (live or on recording)).