Agile Investments takes an active, rather than a passive, approach to asset allocation. We have the flexibility to adjust asset class exposures in order to manage risk and attempt to take advantage of areas that appear poised to outperform.

Our process for making tactical asset allocation decisions encompasses an analysis of the fundamentals, as well as the technical and psychological condition of the markets.

Fundamentals: Valuation at the time of purchasing an asset goes a long way toward determining future returns. There are times when assets are priced to deliver attractive returns and other times when they are not. 

Technicals: Technical analysis - the study of market action itself - is a valuable complement to fundamental analysis. Technical analysis keeps us in sync with the primary underlying trends in asset prices and allows us to identify important support and resistance levels, which provide valuable aids when making tactical rebalancing and reallocation decisions.

Psychology: Markets are a reflection of mass psychology. Sentiment analysis, which measures the degree of bullishness or bearishness of investors toward a particular asset class, is a contrarian technique that is helpful in understanding and anticipating market movements. It is based on the premise that whenever investors become significantly one-sided in their expectations about the direction of asset prices, the market will typically move in the opposite direction.