TACTICAL ETF STRATEGIES BY KEYSTONE WEALTH ADVISORS
The AlphaRotation® strategies are truly tactical. They don’t just overweight or underweight certain asset classes. AlphaRotation strategies will concentrate the portfolio in the areas of highest strength, rotate them as needed, and have the ability to move to 100% cash or U.S. Treasury Bonds.
Relative strength, or relative momentum, has been shown to be a highly effective investment approach since the beginning of financial markets. However, what really makes the AlphaRotation® strategies effective is also using a concept known as absolute momentum.
In simple terms, something has to show it’s not only stronger than its peers (relative momentum), but it also must be stronger than a more stable, risk-free asset like cash or U.S. Treasury Bonds (absolute momentum) in order for it to be held in the portfolio. If it’s not stronger, then the portfolio can simply own cash or U.S. Treasury Bonds until something shows it’s stronger.
Some Investment Managers Say They are Tactical. We Mean It!
Have a Question?
Drop Us a Line!