Tactical Asset Allocation - TAA
An active management portfolio strategy that rebalances the percentage of assets held in various categories in order to take advantage of market pricing anomalies or strong market sectors.
Investopedia Commentary
This strategy allows portfolio managers to create extra value by taking advantage of certain situations in the marketplace. It is as a moderately active strategy since managers return to the portfolio's original strategic asset mix when desired short-term profits are achieved.
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See also: Active Management, Asset, Asset Allocation, Portfolio, Portfolio Manager, Strategic Asset Allocation
Also spelled: TAA