Understanding Tactical Asset Allocation

As a portfolio manager at Wealth Advisors, you are evaluating the concept of Tactical Asset Allocation (TAA) for your client portfolios. TAA involves actively adjusting the asset allocation based on short-term market forecasts with the intent of enhancing returns. In your response, define Tactical Asset Allocation, discuss its primary objectives, and briefly explain how it differs from Strategic Asset Allocation. Consider the advantages and disadvantages of implementing TAA in a client’s investment strategy.