TDT™ - Top Down Tactical, our hybrid asset management style that combines the practical applications of Top-Down analysis with the actively managed approach of Tactical Allocation.

Top-Down analysis begins by scrutinizing the broad global economic picture, deciding if and when it is safe to be invested, and what specific sectors to be invested in depending on the economic cycle. The opposing style is bottom-up investing, which starts with specific businesses regardless of the industry or the economic environment.

Tactical Asset Allocation takes a hands-on actively managed approach to investing, adjusting the portfolio to market conditions, weighted towards sectors that are in favor and between asset classes of bonds and stocks, even going to cash when necessary to preserve principal. The contrasting approach is the old fashioned “buy and hold” strategy which invests regardless of current market conditions or which sector is in or out of favor.

The benefit of TDT is clearly evident by looking at the returns: from 12/31/99 to 12/31/09. If you invested in an S&P 500 Index and held for “the long term,” your total return during that period would have been -12%, or an annualized rate of -1.3%. In inflation-adjusted terms, the return drops to -22%, putting the stock market about where it was in 1973! Investors must be nimble and willing to let go of old fashioned asset allocation models to be successful.

TDT is the powerful investment management style built for today’s dangerous and volatile markets to help provide you peace of mind.

Please see important disclosures regarding our investment advisory services as part of your overall consideration.

Keith Springer is President of Capital Financial Advisory Services, a registered investment advisor, providing Wealth Management, advanced Retirement Planning and Mortgage Consulting Services. For more information, please contact Keith Springer at 916-925-8900 or Keith@KeithSpringer.com