In this episode of Behind the Ticker, we sit down with Katie Stockton, founder and managing partner of Fairlead Strategies, to delve into the philosophy and mechanics behind the TACK investment strategy and explore the offerings of her firm.With her vast experience and a unique perspective on market trends, Stockton discusses the foundations of technical analysis that underpin the TACK strategy. She elaborates on the importance of a disciplined, long-term approach, emphasizing how TACK's method of relying on monthly data helps mitigate risks and navigate the complexities of the financial markets.The discussion also sheds light on Fairlead Strategies' commitment to providing robust, research-driven insights and how the firm supports investors through thought leadership, regular market analysis, and educational content. Stockton's expertise illuminates the pathway for both individual and institutional investors seeking a deeper understanding of technical analysis and its practical implications in portfolio management.For more information about CNBC contributor Katie Stockton and her firm Fairlead Strategies visit www.fairleadstrategies.com
Deeper Dive: Insights from the Full Conversation
Beyond the headline strategy, the full conversation between Brad and Katie Stockton covered several additional themes worth highlighting for advisors and investors.
On Process and Philosophy
That is then supplemented by opportunistic positions in strong environments. So let's say, we have this relief rally underway in the equity market. And in our research, we're telling people to take advantage of it by increasing exposure to higher beta assets. And so tack remains a holding, but then you could supplement it perhaps with high growth, innovative technology stocks, something of that nature. And that would boost performance in a strong tape. And also, you know, create opportunity to, I know a lot of people really like individual stock investing, we do too.
Today we have Katie Stockton. She is the founder of Fairlead Strategies. She is also the portfolio manager behind TACK, the adaptive sector rotation ETF. I was very excited to talk to Katie. Her and I have a lot of the same beliefs and ideas around investing. She is also a veteran when it comes to technical analysis. And she is also a CNBC contributor. I think you will find the strategy behind the rules-based strategy behind TACK, quite compelling, and so I hope you enjoy this conversation with Katie Stockton.
Market Context and Positioning
We call it fairly tactics. You're probably gathering these more voting references in here. And fairly tactics are foundational report. It has our views on the S&P 500 on the sector relative strength. It has views of crude oil, gold, the dollar, treasury yields, really anything that influences equities. And that's where we help people find opportunities, manage risk. We highlight some themes and ideas in that report as well. We recently launched something called the ETF Navigator. Knowing that a lot of advisors are using ETFs as a primary investment vehicle.
And that's been something that I've learned as I've gone along. We, as technical analysts, we're not advisors, well, we are technically investment advisors, but not the kind that you're talking about. So we ourselves don't have client accounts with model portfolio. So we've learned as we've gone along in terms of how advisors are using it. My intention truly was to create something that was holistic, right? So let's say a retail investor could just buy tech. And that could be their equity market exposure.
So that's something I would encourage people to check out. We are a little less active, perhaps on Twitter than some, or X now, but we do have a profile there in Twitter at Stockton Katie, so people can follow us there as well. And for the ETF, there's the fund website, which is fairly funds.com, and folks can track the holdings and learn more about the strategy that way. Well, Katie, again, it was a pleasure to meet you. Really happy we got the opportunity to do this.
Notable Insights
"And in that major, we had the opportunity to have an internship, and it was the internship that set me on the path initially, to study in technical analysis as a discipline."
"So again, before we jump into it, I did see the video of you getting the opportunity to ring the bell at the New York Stock Exchange."
Key Takeaways
- The conversation explores important themes in quantitative investing relevant to today's advisor landscape.
- The conversation explores important themes in risk management relevant to today's advisor landscape.
- The conversation explores important themes in income investing relevant to today's advisor landscape.
What This Means for Advisors
For financial advisors evaluating options for client portfolios, this conversation with Katie Stockton highlights important considerations around quantitative investing. Understanding the strategy behind each fund—not just the ticker—helps advisors make more informed allocation decisions and better communicate the rationale to clients.
The themes of quantitative investing and risk management discussed in this episode are particularly relevant in the current market environment, where advisors are increasingly looking for differentiated solutions that go beyond traditional benchmarks.
Listen to the Full Episode
This article is based on an episode of Behind the Ticker, hosted by Brad Roth, Founder and CIO of THOR Financial Technologies. For the full conversation with Katie Stockton, including additional nuances and details, listen on Spotify, Apple Podcasts, or watch on YouTube.