Over the last decade, there’s been an explosion of tactical money management, a philosophy which diverges from traditional investment models. It has produced a huge shift in the type of offerings and services that are provided. 

 

One method is a cookie-cutter approach that doesn’t take financial individuality into consideration, and the other is on the cutting edge of protecting your investments through intentional strategy and hedging your downside.

 

What are the core differences between standard asset class management and tactical management? Why is tactical management so much more relevant to what’s happening in the world and market now? In this episode, I talk about considering how, and who, you should be investing your money with.

 

3 Things We Learned From This Episode

 

• Passive money management tries to fit you into a model: Traditional money management is passive and standardized. Everything is done at an institutional level and there isn’t a lot of individualized attention to market factors and their impact on one particular sector. The emphasis of this management philosophy is always on rebalancing to the model portfolio range. 

 

• Our perspective on the market is different:  Tactical money managers are not anti-market. We’re pro-market to the extent that it makes sense for your risk preference, your life situation and your long term plans.

 

• The tactical money management approach is current: Tactical money managers evaluate the market conditions continually and they make trades on a daily basis to hedge what is happening, move into sectors that are on the upside and to hedge you against the downside.