Tactical Asset Allocation Strategy Decision

As a Senior Portfolio Manager at a wealth management firm, you have been tasked with implementing a Tactical Asset Allocation (TAA) strategy for a large client portfolio. The portfolio's current allocation is 60% equities and 40% fixed income. Recent market developments and economic indicators suggest an impending recession. You believe this will impact equity markets negatively and may create buying opportunities in defensive sectors. Over the next quarter, you are considering the following tactical strategies:

1. Reducing equity exposure to 40% while increasing fixed income exposure to 60%.

2. Maintaining current allocations and positioning selectively within equities by investing in defensive sectors such as utilities and consumer staples.

3. Completely shifting to cash to avoid equity market downturns.

Based on your understanding of Tactical Asset Allocation principles, which strategy would best reflect a sound tactical approach?