Tactical Asset Allocation - Defined
Tactical Asset Allocation is an active portfolio management strategy that allocates capital to across different stocks, sectors, markets, securities, more actively than a static or strategic approach.
However, Tactical Asset Allocation only says that the investors or portfolio managers method is to more actively allocate capital across various available markets. It says nothing about the methods used to do it. Some may use fundamental valuation, others may adapt to change price trends. Some may use no real method at all. Therefore, "Tactical Asset Allocation" generally discribes the active allocation of capital, but Tactical Asset Allocation programs can differ materially.
