Understanding Tactical Asset Allocation for Long-term Investors

As an investment advisor, you are tasked with preparing a portfolio for a client who is moderately risk-averse and has a long-term investment horizon. The client is interested in understanding how tactical asset allocation (TAA) could be utilized in their investment strategy.

Define tactical asset allocation and explain its purpose within an overall investment strategy. Additionally, discuss at least two scenarios where a tactical asset allocation approach could be beneficial for a long-term investor.