A flexible investment strategy that strives to analyze multiple asset classes, Tactical Trend strives to provide long term capital appreciation while focusing on risk vs. reward opportunities. Capital is deployed in the primary asset classes exhibiting strong relative strength vs. indexes and peers. These asset classes include domestic equities, international equities, fixed income and commodities.
US equity continues to be the most attractive asset class from a performance standpoint. While overweighting US stocks on an asset class level, our index and sector focus continues to favor large cap and growth vs. value. It is worth noting that value has strengthened and reduced the performance gap vs. growth through Q4. Technology represents a 30% allocation and is represented by securities such as RYT (S&P Tech), QQQ (Nasdaq 100) and MSFT (Microsoft). From a value standpoint, it was encouraging to see Berkshire Hathaway Inc. (BRK-B) rally as financials reacted well to the yield rise in the Treasury markets.
Entering 2020, US equity markets continue to trade well although from a weekly momentum standpoint, they may need to take a breath as both the S&P 500 and the Nasdaq 100 have registered readings that often coincide with pullbacks. We view strong momentum as a positive, but prefer to enter new positions on mild pullbacks to increase our risk/reward ratio. As noted on our weekly Friday video, we have been impressed with the action in International markets, and will look for opportunity into Q1, 2020.
Matthew McAleer
Executive Vice President & Director of Equity Strategies
Email | Bio
Cumberland Advisors invites you to join Matt each Friday on YouTube and hear about Cumberland's week in trading. Visit and/or subscribe here: https://www.YouTube.com/CumberlandAdvisors
In addition to Matt, it’s that time of year when the rest of the Team at Cumberland Advisors provide their Q4 Reviews. We may discuss what we favor, cash positions, warning signs, and what we see as opportunities. Read more Q4 Reviews to learn about the thinking behind our positioning of portfolios and how we execute strategies at our website: https://www.cumber.com/2019-q4-reviews/
Links to other websites or electronic media controlled or offered by Third-Parties (non-affiliates of Cumberland Advisors) are provided only as a reference and courtesy to our users. Cumberland Advisors has no control over such websites, does not recommend or endorse any opinions, ideas, products, information, or content of such sites, and makes no warranties as to the accuracy, completeness, reliability or suitability of their content. Cumberland Advisors hereby disclaims liability for any information, materials, products or services posted or offered at any of the Third-Party websites. The Third-Party may have a privacy and/or security policy different from that of Cumberland Advisors. Therefore, please refer to the specific privacy and security policies of the Third-Party when accessing their websites.
Sign up for our FREE Cumberland Market Commentaries
Cumberland Advisors Market Commentaries offer insights and analysis on upcoming, important economic issues that potentially impact global financial markets. Our team shares their thinking on global economic developments, market news and other factors that often influence investment opportunities and strategies.
