Dynamics
for
Today’s Market
“The pessimist complains about the wind; the optimist
expects it to change; the realist adjusts the sails.”
new parameters
- William Arthur Ward (1921-1994)
World financial markets are continually changing and society is
more complex, but human nature typically remains constant.
Many investors spend time worrying and often make decisions based on emotion.
Others simply invest through predetermined allocation programs hoping the market
will conform to their goals, effectively surrendering control to the market.
In our opinion, greater vigilance and clear decision making
are demanded in today’s market climate. This requires a
more active approach than conventional buy and hold
strategies. It is more prudent to adjust to changing
market conditions instead of just trusting
the future to set allocations.
The key is being able to recognize
impending trends as early as possible
by observing potential changes and
preparing for their arrival.
A true tactical approach requires the ability to effectively position assets to
stay in harmony with market trends and countertrends. Investors must always
be able to protect the wealth they have accumulated.
Tuttle Tactical Management (TTM) provides access to this dynamic
approach to investing, which creates opportunity
regardless of market direction.
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Today’s market brings new challenges for investors.
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new standards
Successful investing is more complicated than ever before. Action in one area
can often impact other areas:
● Small stocks are often highly correlated with large and mid-cap stocks.
● Market action in one country is often highly correlated with what is happening in
another country.
● Assets defined as diverse or non-correlated can all move down at the same time.
Not all assets are correlated in the same way all the time. TTM’s approach to diversification and
risk management effectively factors in these concerns.
TTM’s systems technology adjusts and adapts to
ever changing market conditions through:
● Actual Diversification
● Adaptive Neural Network Technology
● Proprietary Risk Management
Actual Diversification
Typically, attempts at diversification are often made by investing in a broad
collection of non-correlated markets. This is more ‘perceived’ than ‘actual’
diversification. Since markets can now become correlated with very little notice, this approach no longer
works. Standard, or perceived, diversification can be dangerous in a down market.
To achieve actual diversification, TTM uses proprietary methodology and time frame variations to
design each investment strategy. Specific market baskets representative of the sectors with the
strongest momentum are created. Underwater correlation studies are done to determine how
correlated one methodology is to another methodology during a downturn.
TTM constructs well-planned models of specific markets when designing strategies. The strategies then
blend a variety of ETFs, index funds, and other mutual funds. Portfolios are customized by combining
the strategies based on the needs and time horizons of the individual client.
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Strong returns... minimal risk.
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solid approach
“Actual diversification is being invested in different
markets and applying specific methodologies to invest
in each of those markets.” - Matthew Tuttle
Tuttle Tactical Management provides four levels
of tactical investing. Each is supported by
adaptive neural network technology.
● Trend Aggregation strategies that combine momentum and countertrend analysis.
● Momentum strategies that are made up of multiple momentum models.
These strategies will have less trading activity than Trend Aggregation strategies
and therefore might be more appropriate for non-qualified accounts.
● Allocation strategies have a fixed core made up of “Smart
Beta” ETFs and a tactical bond rotation model along with
a tactical satellite overlay that can be opportunistic or
defensive.
● Liquid Alternative strategies are completely uncorrelated
with the market but are transparent and liquid. Holdings
are always defined and can be sold without restrictions.
RETURN GOALS:
CONSERVATIVE
MODERATE
AGGRESSIVE
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TTM sets the standard for tactical investment management.
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risk averse
Proprietary Risk Management
Risk can exist on many levels. The perception of risk can be magnified based on the “market noise”
generated by the financial news of the day. This results in emotional responses from investors and can
end up creating actual risk.
The TTM risk management approach is two-fold:
1) Staying in harmony with market trends
The goal is to be positioned in the right investments at the right time. Staying in harmony with market
trends can protect assets from being locked into poor performing investments as conditions change.
This includes being prepared to exit the market completely when appropriate. Exact highs and lows
cannot be predicted, but once a trend is identified assets can be positioned accordingly.
2) Combining non-correlated return streams
Models based on momentum seek to buy asset classes that are strong and sell them when they begin
to weaken. Models based on countertrend analysis seek to buy assets when they are weak and sell
them when they are strong. Instead of an either/or approach, TTM combines such models and seeks
uncorrelated return streams even in down markets.
In the event of bear market declines:
TTM’s risk management approach can keep any or all of
the strategies out of the market entirely, and in cash.
Research
Ongoing research is conducted and approved by the TTM Investment Policy Committee. This includes
stress testing, improving existing strategies and testing new and uncorrelated methodologies. It also
analyzes products that either didn’t exist or lacked sufficient history at strategy inception.
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ttm management
Matthew Tuttle is a Certified Financial Planner® professional. He
is the Chief Executive Officer and Chief Investment Officer of Tuttle
Tactical Management.
The Stamford, Connecticut-based company was founded on the
philosophy of designing innovative investment strategies and
comprehensive wealth management, helping clients create a
business plan for life.
Matthew is a familiar face among the financial media. In addition to speaking at
accounting and trade association meetings across the country, he is a frequent guest
on Fox Business News, BusinessWeek TV and Channel 12 News and has been
interviewed on both CNBC and Fox News. Matthew has appeared numerous times
on CNNfn, notably on the Your Money Show and Dolans Unscripted with Ken and
Daria Dolan.
He is the author of How Harvard & Yale Beat the Market and Financial Secrets of
my Wealthy Grandparents. In addition to his books, Matthew has contributed timely
articles to a variety of financial publications, including the CPA Journal, Pennsylvania
CPA Journal, TAXPRO Journal, Accounting Crossing, the Fairfield County Business
Journal, the Stamford Senior Flyer, and over 25 additional publications nationwide.
He also is a frequent contributor to Forbes.com, The Wall Street Journal, CNBC.
com, SmartMoney and Dow Jones Newswires. He has been quoted in Kiplinger’s
Personal Finance, Money Magazine, USA Today, The Star-Ledger, Bankrate.com,
The Christian Science Monitor and the Journal of Financial Planning. In addition,
Matthew has been profiled in The New York Times, Stamford Advocate and Greenwich
Time.
An experience educator, Matthew teaches personal finance to consumers as an
adjunct professor at Norwalk Community Technical College. He instructs through
the Continuing Education centers of the Westport, Stamford, Darien, Greenwich
and Katonah districts and the 92nd Street YMCA. He has also provided continuing
education instruction to CPAs at Baruch College, the CPA/LAW Forum and through
the CPA Report.
He has received the Fairfield County “40 Under 40 Award,” given annually to forty
executives who demonstrate extraordinary leadership qualities, plus a strong
ongoing commitment to professional development, and have made outstanding
accomplishments in their fields.
Certified Financial Planner® Board of Standards, Inc. owns the certification marks CFP®, Certified Financial Planner® and
federally registered CFP® in the U.S., which it awards to individuals who successfully complete the CFP® Board’s initial
and ongoing certification requirements.
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Dean Kasparian is a market analyst and consultant for Tuttle Tactical
Management, LLC.
A veteran of the investment industry, Dean has devoted over 20 years to the science and study of quantitative market analysis using a proprietary system and
approach to market strategies and tactical asset allocation. He has acquired and
honed a unique blend of skills; not only does he have proven software
development expertise, his experience with both trading and investing has given
him a deep understanding of the financial marketplace.
Dean is the founder and CEO of Sierra Analytics and Vice President of Online Advisors. In 2005,
Dean was recruited to PerTrac Financial Solutions (formerly Strategic Financial Solutions) as Chief
Operating Officer. PerTrac is the world’s leading asset allocation and investment analysis
software for money managers, hedge funds and family trusts.
In 1988 Dean became Director of Development for AIQ Systems, helping to create and establish
the industry standard for Artificial Intelligence screening technology. Track Data Corporation of New
York purchased of AIQ Systems in 1994 and Dean was appointed Division President. The company
won multiple awards for financial software during his tenure, including Best Trading System. Other
areas of specialization include general market timing, trading system development tools and group
sector analysis techniques.
He has provided market analysis for a number of companies and has appeared as a regular on The
Advisors television show and the Wizard of Wall Street radio program.
Dean has also appeared frequently as a guest on many local and national financial television and
radio programs and is a featured presenter on the national lecture circuit, speaking on technical
analysis, market timing, and designing and testing trading systems.
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Tuttle Tactical Management, LLC
Mailing Address:
1 Stamford Plaza
263 Tresser Boulevard
9th Floor
Stamford, CT 06901
Phone: 1-888-723-2821
Email: info@tuttletactical.com
contact
Tuttle Tactical Management, LLC is an SEC-registered investment adviser. You should not assume that any discussion or information
contained in this brochure serves as the receipt of, or as a substitute for, personalized investment advice from Tuttle Tactical Management.
It is published solely for informational purposes and is not to be construed as a solicitation nor does it constitute advice, investment or
otherwise. To the extent that a reader has questions regarding the applicability of any specific issue discussed above to their individual
situation, they are encouraged to consult with the professional adviser of their choosing. A copy of our written disclosure statement
regarding our advisory services and fees is available upon request. Our comments are an expression of opinion. While we believe our
statements to be true, they always depend on the reliability of our own credible sources. Past performance is no guarantee of future
returns.
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