Tactical Money Management vs Market Timing: A Drill-Down and Our Money Managers

Let’s briefly discuss the difference between “market timing” and “tactical investing.”

Since the 2008 crash and with the advent of appropriate technology, the savviest in the (admittedly stodgy) financial services industry realigned to focus on tactical investment trading, not timing per se. As we’ve discussed here, the conventional broker/dealer model focused on strategic investment (buy-and-hold with maybe quarterly re-allocations) is very long-term oriented and insensitive to these fluctuations and focus on mutual funds (MFs). Worse of all, MFs earn only one-directional:  you make money in “up” markets and lose in “down” markets.

In contrast, ETFs (exchange traded funds) are less expensive internally than MFs and can trade within a day, much as a stock trades. Best of all, tactical trading means omni-directional trading in the markets in an attempt to make a positive return:  up, down, or sideways markets. That doesn’t mean tactical management always makes money, beats, meets, or exceeds overall market returns. It does mean that tactical management increases the probability of success more frequently than a pure mono-directional philosophy. It took me a while to be convinced by the new breed and actually affiliate, but tactical investing fits within my intuitive style. I’ve long day-traded as a hobby, but, not with a full retirement or otherwise fiduciary account, for hopefully obvious reasons. However, my new affiliate, independent, money-managers build folios around certain philosophies, and actively trade those folios. One of the best features:  They Don’t Charge Extra for the Trades,  Active Management, or Reallocations! The results speak for themselves, check out some of their websites:

Alpha Investment Mgmt:  AlphaIM Programs

American Values:  American Values Performance

CMG:  CMG Programs

Faith-Based Investor:  Value-Based Investment Portfolios

Hanlon Investment Management:  Hanlon Investment Management

Howard Capital:  Howard Capital Investing

Lindner Capital: Lindner Capital Portfolios

Lunt Capital:  Lunt Capital Portfolios

Navellier:  Navellier Calculated Investing

Syntax Research:  Syntax Research Portfolios

Synergy Financial Management:  Synergy Financial Management

Qbox Fiduciary Solutions:  Qbox for Qualified Funds

Victoria Capital Management:  Victoria Capital Management, Inc.

Wall and Company:  Wall and Company Global Capital Management

W.E. Donoghue:  W.E. Donoghue Portfolios

Weatherstone:  Weatherstone Portfolios.