Tuttle Management, LLC (TM), embraces a three part Investment Philosophy and Strategy which is predicated on the long-term change in market dynamics that began manifesting itself in early 2000. The three parts entail: The Foundation, The Strategy and The Investment and Trading Model.
“Extreme excesses in market valuation, due to immense price appreciation over extended periods, can take years to correct and allow earnings to once again draw closer to prices.”
In short, the foundation and methodology stem from the belief that the US Equity Markets have once again entered into a major macro consolidation period which will hold the market* hostage between 7,000 and 12,000 until valuations recede back below historic undervaluation levels and earnings have had the ability to catch up to prices.
* For ease of explanation when referring to “the market” it is in reference to The Dow Jones Industrial Average.
(Please refer to our Long-Term Investment Theory for further explanation of this thesis.)
“There is a master key to success with which no man can fail. Its name: Simplicity. Simplicity, I mean, in the sense of reducing to the simplest possible terms every problem that besets us. Whenever we cross a situation which, after taking thought, we could not reduce to simplicity, we have left it alone.”
Using the aforementioned theory as the foundation under our money management style we designed a strategy atop which can be summed up in one word – SIMPLICITY!
Everyday money managers are held hostage to a double-edged sword – information. This is one of the most problematic issues facing money managers today: The assimilation of an over-abundant amount of information. Hence, our strategy is to…
Ignore the noise and determine, with reasonable probability, where and when the tops and bottoms may occur within the mega long-term consolidation period. We do this by using corresponding “road signs” of technical and fundamental analysis. Therefore, we change the portfolio accordingly to accommodate the markets’ intermediate term direction.