Daily Archives: March 9, 2015

Managing Portfolio Risk With Tactical Asset Allocation

Tactical asset allocation (TAA) is the solution and the problem. The solution because dynamically managing the asset mix offers the potential for superior risk control and perhaps even higher returns relative to a passive strategy. But TAA is also a problem in the sense that no one’s really sure which set of rules for managing a portfolio’s asset allocation in real time will shine in the future. That alone isn’t a reason to shun TAA, although it’s a reminder that the hazards may be higher in this niche compared with a simple rebalancing regimen such as moving allocations back to target weights every Dec. 31, for instance.
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Initial Guidance | 9 March 2015

● NABE Survey: Business Economists Support US Rate Hike This Year | NY Times
● German exports post biggest drop in five months in January | Reuters
● China Trade Surplus At Record High; Exports Surge More Than Expected | RTT
● U.S. oil production still surging | Econobrowser
● Bank of France Cuts Q1 French GDP Fcast to +0.3% Vs +0.4% | MNI