“If everyone is thinking the same thing, then nobody’s thinking”
-General George Patton
Reasons to Stop Following the Crowd
Sometimes following the crowd makes sense. All drivers agree to stop at a red light, or a fire inside a building, people make their way toward the exits. Other times it makes no sense at all – especially when it comes to investing your hard-earned money.
Three Peaks Wealth Management Tactical Investing
Most of the time common investment strategies keep investors 100% invested regardless of changing market trends, and these investing crowds are seldom prepared to make real changes before, or during market declines. These crowds often suffer without using an exit plan.
In contrast, our tactical investment strategies frequently identify positive and negative changes in market trends thus allowing us to quickly raise or reduce equity exposure. These changes can increase cash holdings during difficult market cycles producing a positive impact on returns while also minimize risk.