Risks of Aggressive Tactical Asset Allocation

As a portfolio manager for a large endowment fund, you are currently considering an enhancement to your tactical asset allocation (TAA) strategy.

Your fund's investment committee has expressed interest in adopting a more responsive approach to fluctuations in interest rates and equity market volatility. To capitalize on short-term opportunities, your committee is evaluating potential tactical adjustments to the asset allocation. One key factor under review is the expected correlation of asset classes during the proposed allocations.

Which of the following statements best describes a potential risk associated with an aggressive tactical asset allocation strategy?