Home      About      News      Funds      Investor Education      Performance      Customer Service      Contact      Financial Professional Login    
 Technical Execution
 ETF Instruments
 Fund Information
 


Technical Analysis and Tactical Asset Allocation

Technical analysis is the process of analyzing a security's historical prices to help identify market patterns. This methodology does not attempt to predict the future. In essence, Tactical Asset Allocation (TAA) works by reallocating at different times in response to the changing patterns of returns available in the markets.

The Arrow/DWA approach to TAA seeks to overweight rotation strategies exhibiting positive relative strength and underweight rotation strategies exhibiting negative relative strength.

U.S. EQUITY STRENGTH
In this scenario, sector and style rotation strategies are exhibiting positive Relative Strength (RS), alternative and international rotation strategies are exhibiting neutral RS and fixed income rotation strategy is exhibiting negative RS. For this market environment, the above illustrates overweighting the sector and style rotation strategies, and underweighting the fixed income rotation strategy while maintaining a neutral weighting in the alternative and international rotation strategies.

INTERNATIONAL STRENGTH
In this scenario, the international rotation strategy is exhibiting positive Relative Strength (RS), sector, style and alternative rotation strategies are exhibiting neutral RS and fixed income rotation strategy is exhibiting negative RS. For this market environment, the above illustrates overweighting the international rotation strategy, and underweighting the fixed income rotation strategy while maintaining a neutral weighting in the sector, style and alternative rotation strategies.

FIXED INCOME STRENGTH
In this scenario, the fixed income rotation strategy is exhibiting positive Relative Strength (RS), alternative rotation strategy is exhibiting neutral RS and sector, style and international rotation strategies are exhibiting negative RS. For this market environment, the above illustrates overweighting the fixed income rotation strategy, and underweighting the sector, style and international rotation strategies while maintaining a neutral weighting in the alternative rotation strategy.

ALTERNATIVE STRENGTH
In this scenario, the alternatives rotation strategy is exhibiting positive Relative Strength (RS), sector, style and international rotation strategies are exhibiting neutral RS and fixed income rotation strategy is exhibiting negative RS. For this market environment, the above illustrates overweighting the alternative rotation strategy, and underweighting the fixed income rotation strategy while maintaining a neutral weighting in the sector, style and international rotation strategy.

 

 

 

2006-2010 © Arrow Investment Advisors

Home | About Arrow | Press & News | Contact Us | Privacy Statement

Before investing, please read the Fund's prospectus and shareholder reports to learn about its investment strategy and potential risks. Mutual Fund investing involves risk including loss of principal.  An investor should also consider the Fund's investment objective, charges, expenses, and risk carefully before investing. This and other information about the Fund is contained in the fund's prospectus, which can be obtained by calling 1-877-277-6933. Please read the prospectus carefully before investing. Distributed by Northern Lights Distributors, LLC, member FINRA.

Arrow Funds may not be suitable for all investors. The funds' use of short selling involves increased risks and additional costs. The funds may invest in commodity- and currency-related securities, which may be subject to greater volatility than investments in traditional securities. The funds may invest in fixed income securities, which are subject to risks including interest rate, credit, inflation and counterparty risks. The use of derivatives such as futures, options and swap agreements may expose the funds to additional risks that it would not be subject to if it invested directly in the underlying securities. The funds may invest in international and emerging market securities which may be subject to special risks including currency fluctuation, government regulation, differences in accounting standards and liquidity. Investing in leveraged instruments will magnify any gains or losses on those instruments. The funds' potential use of short selling involves increased risks and additional costs. The funds may not replicate the exact performance of their benchmarks because of fees, expenses, transaction costs and portfolio tracking error of the underlying investments. The maximum sales charge for Arrow's A-Shares is 5.75%. A-Share investors may be eligible for a reduction in sales charges. The funds charges a fee of 1.00% on redemptions of shares held less than 30 days.  1149-NLD-11/6/2008