3 Oct

How Tactical Tilt Products Minimize Risks

WRITTEN BY Sanmit Amin

Market Realist: I’d like to speak about how you were acquired by Nasdaq. How have  investors benefited from this acquisition?

Tom: Nasdaq brings credibility to Dorsey Wright. I think that for probably half of the tenure of DWA, we had five people here. And then we grew to 20 people, but that’s all we’ve ever had. Nasdaq has a very large global presence. We are now in a different ballgame – the Big League.

Market Realist: Where do you see the smart beta universe headed and the total AUM, and where do you see Nasdaq fitting into that?

Tom: We’re already changing the landscape of smart beta. We’ve developed two ETFs with risk management embedded into the fund. Now the advisor does not have to take it upon himself or herself to raise cash due to market fluctuations as the product will already raise cash inside the wrapper, so we are already taking smart beta into a whole new realm. In this new realm, you have everything locked up into one wrapper.

Or, you can even take our tactical tilt product. This product embraces modern portfolio theory and DWA’s philosophy of relative strength. In my opinion, this is the final solution where a total portfolio, no matter how large, can be managed in one wrapper with a rules-based system. We will continue creating more unique products that make it easier for the advisor to use and easier for compliance to accept.

How Tactical Tilt Products Minimize Risks

Market Realist’s View:
Tactical tilt products minimize risks

The DWA Tactical Tilt portfolios seek to balance risk management demands and wealth accumulation needs for investors using six macro asset classes in a dynamic fashion.  The portfolio can be positioned offensively during risk-on market trends and afforded flexibility to conversely “Tilt” in a more defensive manner during risk-off situations.

As the graph above shows, an example offensive environment using a Moderate Tactical Tilt Strategy could invest up to 75% toward equities and as little as 20% toward bonds. In a defensive environment, by contrast, the same portfolio could allocate up to 75% toward non-equity investments (Cash, Bonds and Alternatives) in an effort to preserve wealth during potential bear markets.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.