Understanding Tactical Asset Allocation

John is a portfolio manager for a mid-sized investment firm that primarily focuses on long-term investment strategies. However, due to recent macroeconomic trends, including rising interest rates and geopolitical tensions, John believes that a tactical asset allocation (TAA) approach may provide better short-term returns. He decides to temporarily adjust the portfolio by increasing its allocation to bonds and reducing its exposure to equities to mitigate risk and take advantage of expected bond performance.

Which of the following statements best describes the tactical asset allocation strategy that John is implementing?