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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.
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What are some of the major quantitative approaches to tactical asset allocation?
I look at the slope of the natural log of the ratio between the asset class and composite, i.e., slope(ln(asset/composite)). Put this into 5 baskets and decide to over weight / under weight accordingl …