Page 101 - Ready Set Retire

Ready. Set. Retire!

Tilting – over- or under-weighting specific asset classes based
on prevailing economic conditions or events. “What asset class
or market segment should I own right now?”
Rotating – over- or under-weighting specific sectors or subsets
of asset classes based on prevailing economic conditions or
events. “What component should I own right now?”
Hedging – moving specific sectors or asset classes in and out
of cash or cash equivalents based on prevailing economic
conditions or events. “Should I be in or out of this class or
sector now?”
Momentum – over- or under-weighting specific asset classes
based on how they are doing; i.e., following the winners.
Whiplash – the effect volatile markets can have on a tactical
strategy.
Tactical investing is a different approach from a typical
managed fund. Since it uses ETFs, it can move in and out of
the market quickly, based on buy and sell signals. An example
of these signals is shown here:

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