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Tactical asset allocation  (TAA) - Financial definition

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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.

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