Shifting to Cash - Strategic vs Tactical

Right now, it appears that cash is king. As the stock market has continued to come under pressure it appears more and more likely that a full blown recession may very well be at hand. As a result, you may want to consider shifting your focus (if you haven't already) from "growth" to "preservation of capital".

Granted, if you are a client of ours, we have already made the strategic and tactical adjustments for you. But what's the difference?

While there is a lot to be said for being a long-term investor and not getting spooked just because the market corrects, there is also a fair amount of wisdom in seeking the shelter of cash during periods of market calamity. We must remember, that every long-term bear market first started as a short-term pullback.

This is why we are big advocates for having both a long-term strategic component to your investment portfolio as well as a short-term tactical component.

However, there are times when both the long-term and the short-term models are both advocating for the safety of cash ... but they get there in different time frames. This is intentional.

If you want to truly understand our approach to why we believe tactical management is appropriate for one's investment portfolio, take a look at our video "Portfolio Math", linked below.

If you want to understand our VSI risk indicator that video is also linked below.

Keep in mind that neither this nor any of our other videos should be considered investment advice. We are merely trying to offer our perspective on how we believe an investment portfolio should be managed. Sometimes, in order to have success in your long-term investment strategy, your first priority is surviving the short-term.

This video, like all of our videos is made to help you understand the reality of what is happening in our nation's economy and how that translates to our stock and bond markets - without the hype and without an agenda. We are a fee-only asset management firm, managing money for discerning investors. If you would like to learn more, you can find our website below. Likewise, you are welcome to follow our Founder and Chief Investment Officer on LinkedIn.

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