Semi-Tactical Model Overlay

Semi-Tactical Model Update

As of June 11, 2018

Last week the markets continued a negative trend. The selloff continued as the year end seems to be pricing in new year volatility.

On Tuesday, December 11th at 9am EST, the “Semi-tactical” models put out a “sell” recommendation to all that are using the models.

This was due to three trading days in a row of 2 or more (out of 3) “sell” signals of the S&P 500 on ($spx). Due to many plans still having (out dated - IMHO) short term trading restrictions on employer sponsored retirement plans, we cannot run a “pure” tactical strategy. Our “semi-tactical” models are designed to (hopefully) avoid a prolonged market downturn (like the Oct 2007 - March 2009 period).

Other tactical strategies may be designed for better“timing”, more frequent trading and the hopes to buy at a low and sell at the high point of a market cycle. Usually these strategies are better suited for Individual Retirement Accounts (IRAs) than they are for Employer Sponsored Defined Contribution (DC) plans. IRAs have many of the same tax consequences as DC plans, but can be set up without short term trading restrictions.

As with all investment strategies, please consult your financial adviser for the options that are best suited for you.

Thanks for reading our blog!

-Kevin T Clark, RF