Surprise! Taa Can Work in Quiet Markets
Journal of Investing, Fall 1997
Posted: 27 Apr 1998
A tactical asset allocation process most typically adds value during the volatile periods of the market cycle, when there is substantial divergence in asset class returns. A tactical options program will add value during the trendless periods of the market cycle. Two such programs together are highly complementary, providing a mechanism to add value during the inevitable quiet - hence unprofitable - periods for TAA. The authors discuss simulated results.
JEL Classification: G11, G12
Suggested Citation: Suggested Citation