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Liquidity Theory

TrimTabs' edge is based on the view that stock prices are set based on supply and demand rather than fundamental value.
We measure both supply—the amount of shares available for investors to buy—and demand—the amount of money available to buy these shares.
We explain the implications of changes in supply and demand indicators for stock prices:
Increasing supply is bearish. All else being equal, more shares translate into lower stock prices. Conversely, decreasing supply is bullish. All else being equal, fewer shares translate into higher stock prices.
Some demand indicators are leading, while others are contrary. Increasing demand is generally bullish, except when inflows become extremely high.
We show investors how to use supply and demand indicators to make money. We offer five model portfolios in our weekly reports: three market timing models and two rotation models for sectors and countries.

TrimTabs Liquidity Theory

TrimTabs clients benefit from real-time analysis of equity market liquidity and macroeconomic trends:

Demand - We track the money moving into and out of the stock market by measuring the flows of mutual funds, exchange-traded funds, and hedge funds.

Supply - We measure changes in the float of shares by tracking corporate buying and corporate selling.

Macroeconomics – We provide a comprehensive assessment of the U.S. economy's health. We measure wage and salary growth and employment growth based on income tax withholdings, and we track a wide range of leading economic indicators.

TrimTabs Investment Research, Inc. (TTIR) is not registered as an investment adviser with the Securities and Exchange Commission (SEC) or any state. It relies on the "publisher exclusion" from the definition of an investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state laws. TTIR provides bona fide research services and investment newsletters that are generally available for subscription by the public. It does not provide any personalized advice.

Through common ownership by certain individuals, TTIR is affiliated with Trim Tabs Asset Management, LLC (TTAM), an SEC-registered investment adviser that sub-advises the TrimTabs Float Shrink ETF (TTFS). In particular, Charles Biderman is the Chairman of TTIR, and the Portfolio Manager of TTFS. TTAM only provides services to TTFS, and it does not offer advisory, research, or other services to any other clients.