Tactical Asset Allocation

Tactical Asset Allocation is an investment strategy where investors actively adjust their portfolio’s mix of assets—like stocks, bonds, or cash—based on short-term market conditions and economic outlooks. The goal is to take advantage of opportunities or avoid risks, potentially boosting returns or reducing losses compared to a fixed, long-term plan. It requires ongoing monitoring and timely decisions to shift investments as market factors change. Essentially, it’s a dynamic approach that seeks to optimize portfolio performance by capitalizing on market trends while maintaining overall investment objectives.