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Market Update

Tactical Asset Allocation: Don’t Try This at Home

Making rapid-fire shifts to take advantage of market trends is easier said than done.

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Tactical asset allocation funds typically shift between asset classes in an attempt to benefit from shorter-term changes in market trends. The appeal behind these strategies is obvious: Every once in a while, stories emerge about unusually prescient market calls, such as Elaine Garzarelli’s bearish call before Black Monday in October 1987, George Soros’ successful bet against the British pound in 1992, and John Paulson’s short play on the U.S. housing market in 2006. 

Amy C. Arnott does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.