Tactical Asset Allocation Strategies

David is a portfolio manager at a financial advisory firm that caters primarily to high-net-worth individuals. Recently, he has been analyzing market trends and economic indicators to inform his clients' investment strategies. David firmly believes that utilizing tactical asset allocation (TAA) can provide better returns by taking advantage of short-term market inefficiencies. He is considering adjusting the stock and bond allocations within his clients' portfolios to capitalize on anticipated shifts in interest rates and equity valuations.

Given David's approach, he is weighing three potential tactics for his upcoming asset allocation shift: