I was recently named Chief Investment Officer at Sowell Management Services, a registered investment advisor that is responsible for about $500 million of client assets. Part of the gig is to communicate all things market related to the portfolio managers, the sales team, and the independent advisors who represent the firm.

During a staff meeting on Monday, the National Sales Manager wanted my take on the current environment for “tactical” investment strategies. He noted that most tactical managers had a rough go last year and wondered if the environment had changed with the calendar. My response was brief and to the point, “It’s been ‘sheer misery’ in the tactical space since the beginning of 2014… and no, nothing has changed.”

Not surprisingly, I was asked to put “some color” behind my view and to extrapolate on why the environment has been tough on folks trying to employ a tactical approach to investing (which according to Investopedia is defined as: “An active management portfolio strategy that rebalances the percentage of assets held in various categories in order to take advantage of market pricing anomalies or strong market sectors.”)

I tried to respond as succinctly as possible and when I was done, I realized that others might find my explanation of the current environment worthwhile.

So, here was my response and some thoughts on what investors/advisors should be doing now…

Read the rest of the report…


David Moenning

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David Moenning is Mr. Moenning is President of Heritage Capital Research, a privately owned, investment research firm. Heritage focuses on active risk management and an “own the best and ignore the rest” equity selection strategy.

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Positions in stocks mentioned: none

The opinions and forecasts expressed are those of David Moenning, President of Heritage Capital Management (HCM) and may not actually come to pass. Mr. Moenning’s opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security or Heritage Capital program. No part of this material is intended as an investment recommendation. Neither the information nor any opinion expressed constitutes a solicitation to purchase or sell securities or any of HCM’s programs. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that investment objectives outlined will actually come to pass. Investors should consult an Investment Professional before investing in any investment program. Neither Mr. Moenning or Heritage Capital Management nor any of their employees shall have any liability for any loss sustained by anyone who has relied on the information contained herein. Mr. Moenning and employees of HCM may at times have positions in the securities referred to and may make purchases or sales of these securities while this publication is in circulation. The analysis contained is based on both technical and fundamental research. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.