Tactical asset allocation (TAA) - Financial definition
Financial acronyms
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Concise definition of the term tactical asset allocation
Tactical asset allocation is an active portfolio management strategy that consists of dynamically adjusting a portfolio's strategic asset allocation based on short-term market forecasts.
Comprehensive definition of the term tactical asset allocation
The goal of a TAA strategy is to improve the risk-adjusted returns of passive management investing by systematically exploiting
inefficiencies or temporary imbalances in equilibrium values among different asset or sub-asset classes.