Matthew Tuttle, Chief Investment Officer of Tuttle Tactical Management LLC, is confident that policymakers in Washington will find a way to keep the U.S. from going over the so-called fiscal cliff. In turn, a year-end stock and exchange traded fund rally may be on schedule for the end of the fourth quarter, particularly in emerging and international economies.
“We see that region (Hong Kong, Singapore, Australia), along with China, as highly undervalued compared to the U.S. and even Europe,” Tuttle said in a recent report. “Those areas largely haven’t benefited from the recent rally as much as other parts of the world. So we think that there’s still a lot of upside left in the Pacific Rim heading into 2013.”[Advisors like ETF Managed Portfolios for Low Cost and Diversification]
Tuttle is bullish toward international stocks and ETFs and manages $100 million in assets for wealthy investors and institutions, reports Murray Coleman for The WSJ. Tuttle Tactical Management also creates specialized prepackaged ETF-only portfolios for other advisers based on its private account investment strategies.
In the ETF managed portfolio space, there were 500 strategies through June with 48% asset growth and $50 billion in assets. Yet the industry’s growth is just getting started, Andy Goherty said in a recent interview. Managed ETF portfolios give investors low-cost diversification with broad based assets and add value to any portfolio. The introduction of the ETF managed portfolio, recognized by Morningstar, has allowed small firms to participate in the activity for investors and advisors. Portfolio managers are also using ETFs in place of single stocks to achieve asset allocations in small accounts. [Morningstar's Paul Justice on Managed ETF Portfolios]
“Trend-following strategies, almost by definition, work best when markets are either clearly moving higher or lower. When conditions turn more uncertain, then they almost always run into increased headwinds,” said Morningstar analyst Samuel Lee, not referring specifically to TTM’s portfolio. [Five Key Trends in the ETF Landscape]
“In most portfolios, we’re still near our maximum levels right now in emerging markets,” Mr. Tuttle said. “We’re expecting an end-of-year rally in global markets, with Asia and Latin America leading the way in early 2013.” [Tactical ETF Managed Portfolios Turn Defensive]
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
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