Tactical Asset Allocation Response to Economic Uncertainty

As a senior portfolio manager at Apex Wealth Management, you have been closely monitoring the fluctuations in equity and fixed income markets during a period of economic uncertainty. Your client, a wealthy individual with a net worth of $10 million, has expressed a desire to leverage Tactical Asset Allocation (TAA) to enhance returns while managing risk. In your analysis, consider the current macroeconomic indicators, such as interest rates, inflation, and geopolitical events, that may influence asset prices. Additionally, evaluate how the client's risk tolerance and investment goals align with potential TAA adjustments. Conclude with a suggested TAA strategy that details which asset classes to overweight or underweight and the rationale behind these decisions.