Steve On Tactical Investing for Advisors: theStreet

Steve Blumenthal, CMG Capital Management Group, theStreetTactical investing is about planning to accomplish a purpose, says Steve Blumenthal, CEO of CMG Capital Management Group during a recent interview on theStreet.

“We speak and work with hundreds of financial advisors,” Steve tells Gregg Greenberg in theStreet’s Wall Street studio. He explains CMG’s tactical investing strategies, and the framework of the CMG Global Equity Fund (GEFAX). You certainly want to have long equity exposure, but you want to hedge in these uncertain times, says Steve.  “Japanese Yen still a clear short,” Steve says, and he mentions a Pro Shares ETF that can used to accomplish that strategy.

Click here to take a look at the full clip from Steve’s conversation with Gregg Greenberg of theStreet.com. See more CMG Capital Management Group News.

Don’t Trust 60/40 Portfolio, Blumenthal on theStreet

Steve Blumenthal, CEO, CMG Capital Management Group on theStreet talking about an alternative to the traditional 60/40 stock-bond portfolioSteve Blumenthal, CEO of CMG Capital Management Group, talked to Gregg Greenberg at theStreet in New York yesterday (video below). The market is  overvalued by 20% after last year’s rally and bond yields remain at record lows, so the traditional 60/40 stock/bond split is not optimal, says Blumenthal, portfolio manager for the CMG Global Equity Fund. Blumenthal says a better way to allocate assets is 33% in stocks, 33% bonds and the final 34% in a tactical trading portfolio. His most recent tactical trades are going long the SPY and TLT exchange traded funds, as well as the Pro Shares Ultra Short Yen ETF.

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CMG Capital Management Group on theStreet

Steve Blumenthal, CEO of CMG Capital Management GroupSteve Blumenthal, CEO of CMG Capital Management Group, spoke to Gregg Greenberg at theStreet about why the old 60/40 asset allocation model isn’t a good bet in today’s environment.

We are in an investment environment that offers historically low traditional investment returns. Today, the projected return on the traditional 60/40 model is the lowest in 140 years at 4.26% (excluding management fees), according to Research Affiliates, LLC.

Instead, Blumenthal and CMG favor a tactically managed 33/33/34 strategy that combines many non correlating risk diversifiers to smooth the return stream for investors by managing risk while enhancing returns.

Blumenthal favors 33/33/34 as a better definition of a balanced portfolio today. Enhanced Modern Portfolio Theory didn’t fail the last 12 years; the failure occurred in the construction process. The risks were too concentrated because the solutions were unavailable to most investors. Today the solutions exist for all investors, and advisors.

See the full segment with Steve Blumenthal on theStreet: Here’s Why Your Old Asset Allocation Isn’t Working.