Evaluating Tactical Asset Allocation During Economic Uncertainty

Oliver is a seasoned portfolio manager at a boutique wealth management firm. He has been utilizing Tactical Asset Allocation (TAA) as part of his investment strategy, aiming to capitalize on short-term market opportunities while maintaining a stable strategic allocation. Currently, he is evaluating various economic indicators to make tactical shifts in his portfolios. Recent trends indicate a possible recession due to declining consumer confidence and rising inflation rates. Oliver is considering three distinct approaches to adjust his asset allocation.