Tactical Asset Allocation in Response to Market Conditions

Investors often utilize tactical asset allocation (TAA) to adjust their portfolio's asset mix in response to short-term market conditions. Unlike strategic asset allocation, which focuses on long-term investment strategies based on the investor's risk tolerance and investment objectives, TAA allows for more dynamic shifts in asset allocation based on economic forecasts, market trends, and other indicators.

Consider the following scenario where an investor believes that economic indicators suggest a downturn in the equity market. The investor is evaluating the tactical shift in their portfolio from a predominantly equity-based strategy to a more conservative allocation that includes a greater proportion of fixed-income securities.

Based on the principles of tactical asset allocation, which of the following strategies would be the most appropriate for this investor?