Tactical Asset Allocation: Basics

Tactical Asset Allocation: Basics

Intuition Publishing Pty Ltd
Updated Sep 24, 2020

Tactical asset allocation (TAA) is an active portfolio management strategy that involves deviating from the original asset allocation in response to significant expected returns which should mostly materialize in a relative short period of time. We review the key assumptions of TAA strategists and how market practitioners invoke the TAA approach. The history of TAA is looked at and how it compares to security selection strategies.