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When is the Right Time to Hire a Tactical Money Manager?

Posted by Michael J. O'Connor | CWS®, Vice President Investments

January 19, 2018

Let’s start with a more basic question: what is a tactical money manager? To answer that, an investor must first understand “tactical asset allocation,” which is an active management portfolio strategy that aims to capitalize on certain anomalies and/or events in the markets.

Many tactical money managers try to actively trade around such anomalies to gain a leg-up and produce what’s known as ‘alpha’ in a portfolio. Often times, the tactical money manager sees a situation in the market – whether it be bullish or bearish – and attempts to navigate a portfolio through it, with the aim of making a profit or avoiding a loss. In many cases, the manager may allocate back to the original asset mix once the ‘event’ passes, but not always.

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BlackRock Releases 2Q 2017 Global Investing Outlook

April 20, 2017
Global growth expectations are on the rise, and we see room for more upside surprises... Reflation is going global. The signs include a rebound in inflation expectations, a bottoming out in core inflation and wages, and a synchronized pick-up in economic activity indicators and corporate earnings estimates. Read the key points of BlackRock's analysis below. Or, download the complete commentary (PDF). [+] Read More

What is ESG Investing and Does It Make Financial Sense?

April 4, 2017
Corporations in America are aware that public perception is important. That’s why many companies have made strides in recent years to emphasize their efforts in caring for the environment, providing equal opportunities to employees, and being active contributors to small communities. It’s PR 101 for building trust and goodwill towards a brand, which can ultimately help drive sales. [+] Read More

Lord Abbett Stocks: Don’t Sweat the Post-Trump

January 31, 2017
Concerns about U.S. equity valuations reflect perceptions that the market has fully priced in prospects for earnings acceleration. But analysts' forecasts for 2017 are nearly unchanged from September 2016. U.S. companies are set to report their strongest profit growth in two years for the fourth quarter of 2016, based on consensus Wall Street analyst estimates. Continuing their recovery from a yearlong decline in quarterly profits, companies in the broad U.S.-market representative S&P 500 Index are expected to report their bottom lines grew by 3.4% in the fourth quarter of 2016, the fastest rate of growth since a 4.6% increase in the fourth quarter of 2014. This quarter’s growth is an improvement from the 3% increase witnessed in the third quarter, and growth is projected to accelerate over the course of 2017. Read on for a summary of their analysis, or view the entire document here. [+] Read More

BlackRock 2017 Investing Outlook

January 2, 2017
Global growth expectations appear to be picking up after an extended slide... BlackRock expects U.S.-led reflation (rising nominal growth, wages and inflation) to accelerate, and sees fiscal expansion gradually replacing monetary policy as an economic growth and market driver around the world. They discuss these topics, as well as the impact of technological change, the risk of a China credit bubble and the dynamics of investor risk appetite, in their 2017 Investing Outlook. Read the key points of BlackRock's analysis. Or, download the complete commentary (PDF). [+] Read More

Lord Abbett: Investing in Dividend Payers and Growers

December 26, 2016
We continue to believe investors will be well-served to focus on dividend growth. As bond yields begin to compete with equities, we recommend an ecumenical approach to equity income and growth in dividends. One of the major impediments to using stocks for yield has been the earnings recession over the last five quarters. The continuation of that trend would have undermined the stability of the dividend payout. The market, however, has now withstood the effects of a stronger dollar on multinational earnings and withstood the energy sector’s adjustment to oil at $50 per barrel. And the S&P 500 is finally growing earnings again, year over year. Read on for a summary of their analysis, or view the entire document here. [+] Read More

BlackRock Update November 2016

December 5, 2016
U.S. equity indexes hit records; U.S. dollar index surges to nearly 14-year highs. Richard Turnill, BlackRock’s Global Chief Investment Strategist, summarizes the week highlights news to watch in the week ahead. Read an excerpt of his weekly commentary below, or download the complete commentary as a PDF. [+] Read More

The Findings of Polen Capital's “10,000 Portfolios Project”

November 22, 2016
Have you ever wondered whether your portfolio was optimally allocated or not? Or, in other words, do you ever sit back and think: “is there a better way I could have invested my portfolio over the last 20 years?” With the benefit of hindsight, we know that there is almost always a “better way” we could have invested. But unfortunately we do not have the benefit of hindsight with investing! We can only take the information we have available and make what we think are the best decisions possible for our long-term goals. [+] Read More

Lord Abbett 2017 Global Investing Outlook

November 21, 2016
How Policy and Politics Shape the Global Outlook for 2017 As the dust settles from the U.S. presidential election, what might investors expect in the coming year? New U.S. leadership working with a Republican-unified Congress likely will have a meaningful impact on U.S. investment values, especially if legislation involving infrastructure spending, repatriation of U.S. corporate foreign cash, and tax reform become early priorities in 2017. Just as influential will be macro factors that weigh on global growth and interest rates. The uncertainties of the “Brexit” process, as the United Kingdom negotiates its separation from the European Union (EU), the related tilt toward protectionism in many nations, the pursuit of currency weakness by major non-U.S. economies, and continued “lower for longer” interest-rate policy should combine to support interest in U.S. investments. Differences between the U.S. economy and many advanced economies with regard to monetary policy, currency movement, and economic growth may define investor preferences among many asset classes in 2017. Here, we survey what 2017 may bring for major global economies—and key U.S. investment categories. Read on for a summary of their analysis, or view the entire document here. [+] Read More

BlackRock: Trump's Impact on the Stock Market

November 14, 2016
Donald Trump’s unexpected election win points to uncertainty ahead. Donald Trump’s unexpected election victory brings market and policy uncertainty in the short run. Trump’s agenda lacks detail and departs from the Republican Party tradition on trade, security and entitlements. Tapping into a backlash against the Washington status quo, he has often appeared at war with his own party and has surrounded himself with less-known advisors. We expect an initial sell-off in risk assets and flight to perceived safe havens. We see emerging markets as particularly vulnerable due to their reliance on exports and investor sentiment. We expect steeper yield curves and see health care stocks outperforming due to likely reduced regulation under Trump. Read on for an excerpt of Blackrock Investment Institute's commentary, or view the entire document here. [+] Read More