The biggest story of 2014 isn't the end of quantitative easing. It's the unrelenting collapse in oil prices, and what that means for stock markets worldwide. The meme out there? Falling oil is bullish. After all, the more oil falls, the more consumers and companies save. I'm sorry, but there are a number of flaws with this argument. First of all, falling oil can be bullish, but collapsing oil tends to historically be very bearish. Many major corrections and bear markets have been preceded by oil in a precipitous fall. Second, people forget that several state budgets actually rely on tax revenue that is derived from oil drilling and exploration activities. If that tax revenue collapses because those companies collapse on that oil decline, what's the response by those states? Raises taxes on, you guessed it, consumers. Third, you might want to be careful what you wish for when it comes to falling oil prices. A good amount of many junk-debt indices is made up of energy-sector bonds. Junk-debt spreads have been widening, and should defaults occur in the energy space, that could serve as a butterfly effect for all bonds."Sometimes a concept is baffling not because it is profound but because it is wrong." —E. O. Wilson The biggest thing that counters the "collapsing oil is bullish" meme is the behavior of defensive sectors of the stock market, which our equity sector ATAC Beta Rotation Fund BROTX, +0.77% has the ability to position all in to based on our proprietary risk trigger. If indeed falling oil were bullish, shouldn't more cyclical areas of the market rally on that? If falling oil were bullish, shouldn't U.S. small-cap stocks — which are heavily dependent upon domestic U.S. revenue growth — be substantially outperforming? Take a look below at the price ratio of the iShares Russell 2000 ETF IWM, +0.60% relative to the Vanguard S&P 500 ETF VOO, +0.44% As a reminder, a rising price ratio means the numerator/IWM is outperforming (up more/down less) the denominator/VOO. Yes, the ratio appears to want to move higher, but shouldn't it be surging with how severely oil has broken down to reflect just how "bullish" that is for the U.S. economy? The meme is wrong on this. Falling oil, if it’s gradual, is healthy, but collapsing oil can be indicative of something more serious which equities, with a lag, might respond to in a negative way. Defensive sectors may be anticipating this. Are you? This writing is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction, or as an offer to provide advisory or other services by Pension Partners, LLC in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Pension Partners, LLC expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing. The Fund's investment objectives, risks, charges, expenses and other information are described in the statutory prospectus, which must be read and considered carefully before investing. You may download the statutory or summary prospectus or obtain a hard copy by calling 855-ATACFUND or visiting www.atacfund.com. Please read the Prospectuses carefully before you invest. Mutual fund investing involves risk. Principal loss is possible. Because the Funds invest primarily in ETFs, they may invest a greater percentage of its assets in the securities of a single issuer and therefore is considered non-diversified. If a Fund invests a greater percentage of its assets in the securities of a single issuer, its value may decline to a greater degree than if the fund held were a more diversified mutual fund. The Funds are expected to have a high portfolio turnover ratio which has the potential to result in the realization by the Fund and distribution to shareholders of a greater amount of capital gains. This means that investors will be likely to have a higher tax liability. Because the Funds invest in Underlying ETFs an investor will indirectly bear the principal risks of the Underlying ETFs, including but not limited to, risks associated with investments in ETFs, large and smaller companies, real estate investment trusts, foreign securities, non-diversification, high yield bonds, fixed income investments, derivatives, leverage, short sales and commodities. The Fund will bear its share of the fees and expenses of the underlying funds. Shareholders will pay higher expenses than would be the case if making direct investments in the underlying funds. The Beta Rotation Fund is new with no operating history and there can be no assurances that the fund will grow or maintain an economically viable size. All investing involves risks. Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. The fund as of 12/01/2014 does not invest in any of the following investments: IWM, and VOO. Fund holdings are subject to change and are not recommendations to buy or sell any security. Current and future holdings are subject to risk. The S&P 500, or the Standard & Poor's 500, is an American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ. MA(4) = 4 week moving average' Correlation is a statistical measure of how two securities move in relation to each other. References to other securities should not to be interpreted as an offer of these securities. ATAC Beta Rotation Fund is distributed by Quasar Distributors, LLC. No other products mentioned are distributed by Quasar Distributors, LLC.