A one-size fits all investment approach does not work in today’s stock market.
The stock market is unpredictable and ever-changing due to political uncertainty, the global economic tug-of-war, and 24-hour news headlines.
Choosing a traditional buy-and-hold strategy that relies on a single style such as dividend investing, value, growth, momentum, or any other approach may lag the market over time. Plus, selling stocks that have been invested in and held for the long-term, because of short-term sentiment or negative news, may be inefficient and could lead to underperformance, greater costs, and ineffective risk management.
OUR MULTI STRATEGY FRAMEWORK
Our tactical investment solution navigates today’s market using a multi strategy framework with the goal of increasing the return for investors while lowering volatility. We use three different approaches to tackle the market and help maximize efficiencies:
1. Invest in strong companies for the long-term.
2. Take advantage of cyclical changes in the market over the medium-term.
3. Adjust to short-term momentum to protect or take advantage of swings.
LONG, MEDIUM, SHORT
Long-Term: This component uses the more traditional investment structure and decision-making process by building positions in stocks of 30 to 40 companies with strong themes that we plan to own for the long term. The focus is on companies that demonstrate solid growth and momentum, as well as healthy fundamentals. The purpose is not to trade in and out of the market based on current headlines.
Medium-Term: This is the more tactical component where we can temporarily overlay sectors, countries and styles based on a global macro-economic approach to investing. We use fundamental, technical, and business thinking to select investments that we believe will outperform over the next few quarters (3 to 6 months). We use ETFs to efficiently gain exposure in areas where we see the most opportunity for growth and/or protection.
Short-Term: The last component of our approach to the stock market is earmarked to handle the short-term market fluctuations based on technical analysis, momentum trading, and sensibility. This is our risk-on/risk-off lever which allows us to nimbly overweight or underweight our equity exposure while remaining cost and tax efficient. This segment is our first line of attack, or defence, where we typically use one or two ETFs to efficiently invest in, exit, or short the key stock indexes. This is also where we implement option strategies or move to cash when risks are elevated for greater protection during market downturns.
Would you like to learn more? Contact us today.
"A smaller firm like TURN8 can make decisions faster than the big guys. Especially when it is time to react to volatile market conditions."