Tactical Asset Allocation
Tactical Asset Allocation (TAA) is an investment approach that temporarily deviates from a base strategic asset mix to adjust risk exposure in response to short- to medium-term market or economic conditions, within a defined risk framework.
Example: In a diversified portfolio, a TAA process might shift the baseline from 60% equities and 40% fixed income to 65% equities and 35% fixed income in response to a near-term growth and inflation outlook, then revert to the baseline when conditions change.
💬 Comments