Morningstar last week advised that tactical asset allocation funds “failed—again.” That sounds ominous for this class of strategies, but a closer review suggests it’s misguided to pull the plug on the on idea that dynamically adjusting weights of asset classes has crashed and burned. As discussed below, the case for tactical asset allocation (TAA) is quite strong, assuming you’re an informed investor able and willing to separate the wheat from the chaff in this corner of portfolio management.
Daily Archives: February 10, 2025
Macro Briefing: 10 February 2025
US non-farm payrolls rose 143,000 in January, a sharp slowdown from December’s strong increase. Meanwhile, the unemployment rate fell to 4.0% last month — lowest since May. “The weaker January increase masks what may be a firming trend in hiring,” advises a note from TMC Research, a unit of The Milwaukee Co., a wealth manager. “Using a 3-month average of payrolls to reduce the short-term noise suggests the hiring trend appears to be picking up. Note, too, that the 6-month trend turned above the 1-year change in January for the first time since May.”
