Tag: Tactical ETF Strategies

Staying Invested Through Market Volatility (Animated Video)

At Sage, we are tactical investment managers. That means when the market starts to take a turn, we shift toward stocks, bonds, and other securities that are likely to perform better than others given the market environment. This creates a smoother ride for investors and increases the likelihood that they stay invested.

Tactical Investment Strategy, November 2020

We are looking beyond election-related volatility and are focused on four pillars of the recovery – positive economic momentum (especially the U.S. consumer), favorable central bank policy, forthcoming fiscal stimulus, and the prospects of a vaccine. This view suggests staying positioned for further upside, and so far this has been rewarded in the fourth quarter with positive returns despite bumpy markets.

Sage Advice Tactical ETF Quarterly Market Review 3Q2020

Markets may have struggled during the second half of Q3, but the global economy did not, with data continuing to show evidence of a strong rebound led by the U.S. Most major data releases in the U.S. beat consensus expectations in recent months, and China has continued its recovery trajectory. Growth and virus concerns remain high for a hard-hit Latin America region and India, and we do expect moderation in Q4 growth as some of the initial rebound demand fades and certain stimulus programs phase out. The bottom line for investors is that the recovery is on track, and coupled with policy support, the likelihood of further stimulus, and a vaccine on the horizon, we suggest remaining positioned for further upside in equities and higher-yielding fixed income sectors.

The Cost of Going to Cash

October 20, 2020 — During the last four market corrections, on average roughly two-thirds of an investor’s downside was recovered in just two weeks. Pulling out of the market during a downturn in favor of cash would leave most investors in a bind, because timing when to reinvest that cash is extremely difficult (and the window of opportunity short-lived). At Sage, we are tactical managers. What does that mean? Instead of deciding when to exit and reenter the market, which is extremely difficult to time, we ask what segments of the market are likely to outperform? What is causing the correction? And, what asset classes are likely to have the most upside as the markets recover? At Sage, we believe there is always a more advantageous place to be than cash.

Asset Allocation Perspectives — Elections & Market Implications

This brief report details how the markets are likely to respond to various elections scenarios. It explains the impact of Covid-19 cases on polling, how the S&P 500 has performed historically post-elections, the potential impact of contested results, and the effects of trade, fiscal, and monetary policies.

Tactical Investment Strategy, October 2020

While markets experienced a rocky September following a very strong August, evidence points to further economic recovery and upside in risk assets. Data should remain supportive with post-lockdown growth above trend, an accommodative Fed, and favorable sentiment. As such, we retain our recovery positioning, with tilts toward equities and higher-yielding fixed income. Less attractive valuations and rising geopolitical risk have, however, prompted several tactical adjustments recently to position for continued market volatility and a recovery with less upside surprises.