As part of a comprehensive portfolio analysis, a wealth management firm has employed attribution analysis to evaluate its investment manager's performance relative to a benchmark. The firm has identified that the portfolio generated a return of 8%, while the benchmark returned 6%. The analysis further reveals that the manager's tactical asset allocation decisions contributed positively to the performance, particularly through overweighting in technology and underweighting in energy sectors.
Discuss the concepts of attribution analysis, focusing on the importance of both allocation and selection effects in performance evaluation. Additionally, explain how a positive tactical asset allocation can influence overall portfolio performance and how it may affect future investment decisions.