Tactical asset allocation
InvestingDefinition
Short-to-medium-term tilts away from strategic weights based on market views. Range: ±5-10% from SAA targets, on quarterly to annual horizons.
Rarely adds significant long-run alpha — most TAA programs underperform pure SAA after costs. Worthwhile mostly when valuations or risk premia are at multi-decade extremes.
Rarely adds significant long-run alpha — most TAA programs underperform pure SAA after costs. Worthwhile mostly when valuations or risk premia are at multi-decade extremes.