Tactical asset allocation involves shortterm adjustments based on market conditions from "summary" of All About Asset Allocation, Second Edition by Richard Ferri
Tactical asset allocation is a strategy that involves making short-term adjustments to a portfolio based on current market conditions. This approach aims to take advantage of opportunities that arise in the market, such as undervalued assets or changing economic conditions. By making tactical adjustments, investors can potentially improve their overall returns and manage risk more effectively. The key to successful tactical asset allocation is being able to accurately assess market conditions and make informed decisions about when to adjust the portfolio. This requires a deep understanding of the factors that drive asset prices, as well as the ability to analyze data and trends in the market. Investors who are able to identify opportunities and make timely adjustments can potentially outperform th...
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