Tactical Asset Allocation Strategy for High-Net-Worth Clients

Imagine you are a portfolio manager for a high-net-worth individual (HNW) client who possesses a unique combination of aggressive growth objectives and a pronounced sensitivity to market volatility. Due to recent shifts in global economic conditions, you have identified particular sectors that may present short-term opportunities. You are considering employing a Tactical Asset Allocation (TAA) strategy to adjust the client's portfolio in response to these anticipated changes.

In your response, outline the rationale for adopting a TAA approach in this context, detailing how you would identify investment opportunities and the specific sectors you would target. Additionally, discuss the risks associated with TAA and how you would communicate your strategy and rationale to the client.