Asset Allocation Strategy Implementation for Aggressive Client

As a senior portfolio manager at a family office, you are tasked with implementing an asset allocation strategy for a client with an aggressive investment objective. The client has a total portfolio value of $2,000,000 and is particularly interested in maximizing long-term capital appreciation. Following discussions on risk tolerance, time horizon, and market conditions, you decide to consider a mix of equities, fixed income, and alternative investments to achieve the desired return profile.

Given the current market outlook of high volatility in equity markets and low yields on fixed income securities, you're evaluating the effectiveness of tactical asset allocation versus a strategic asset allocation approach. You are keen to monitor the correlations and volatility of the underlying assets to optimize the risk-return profile while maintaining the flexibility to adjust allocations as market conditions change.