Fairlead Strategies’ Stockton Makes The Case For Tactical Investing

Katie Stockton, CMT, Founder and Managing Partner of Fairlead Strategies, joined Keith Black, Managing Director of RIA Channel, to discuss the Fairlead Tactical Sector ETF (TACK).

Technical analysis is the study of price trends and momentum, seeking to understand the forces behind those price trends.  The tactical positioning of the TACK ETF is driven by models that seek to reallocate monthly to the market sectors exhibiting the strongest momentum and relative strength.  The model considers 14 sectors for investment and typically holds positions in the five to eight sectors with the best technical outlook. 

In an equity bull market, the ETF seeks to tilt toward risk-on sectors, taking advantage of the upside momentum in the market and the more aggressive sectors.  The ETF is designed to have built-in risk management, as the model can allocate to less risky sectors, including gold and Treasuries, during times of equity market drawdowns.   

Some investors allocate to TACK as a stand-alone tactical holding or as a hedged equity exposure, explains Stockton. In contrast, others may hold it as a core equity position that seeks to participate more in equity bull markets and less in equity bear markets. 

To learn more, head here.

The interview took place on Monday, May 22nd at the Wealth Management EDGE conference.