FYI: In simple terms, tactical asset allocation actively modifies a portfolio’s strategic asset allocation based on short-term market forecasts. The end goal of this strategy is to take advantage of market inefficiencies across various asset classes. This strategy doesn’t discard the importance of long-term SAA; rather, it uses TAA to overcome significant short-term risk factors.
Regards,
Ted
https://mutualfunds.com/portfolio-management/understanding-tactical-asset-allocation/
