Tactical Asset Allocation in Portfolio Management

As a portfolio manager at Capital Growth Investments, you are analyzing the performance of your client's portfolio over the past year. Your client, a high-net-worth individual, has expressed concerns about potential market fluctuations and is interested in how Tactical Asset Allocation (TAA) can be effectively utilized to mitigate risk and capitalize on short-term opportunities.

Please discuss the concept of Tactical Asset Allocation, its potential benefits, and risks associated with its implementation. In your essay, provide a framework for constructing a TAA strategy and how you would communicate these strategies to your client. Include considerations regarding market conditions, the frequency of adjustments, and any relevant constraints that may impact the overall portfolio allocation.