When you consider short-term conditions in the market you can adjust the mix of your asset classes in a strategic move to ensure management of a portfolio that is proactive. It is evident that most well-experienced investors have taken up the tendency to diversify and compose their portfolio management in a strategy that helps them stay Afloat even when things are going south. It has been a proven and effective strategy when stocks are picked at random and analyze holistically so that you beat the most efficient market. The ability to spread out much risk and maximize return on every risk makes investors bold enough to go out in a bull market and do an investment without much of a hassle.
With experience in unknown animal list that cause instabilities in markets that sitting down on market efficiency active portfolio managers move with quick speed to build on a strategy that with replacement buying causes some Returns on the risk that has been spread out already.
Research has indicated that momentum is a premier anomaly that affects the most efficient market where prices 10 two establishments long into the future but over the short-term, they keep fluctuating and that affects the normal investment strategy the most proficient investors are used to. Another anomaly that affects the market efficiency is a short-term mean reversion whereby the mean rate of return policy reverses every orphan and as such it is difficult for an investor to comprehensively study and predict the performance of an asset over a certain duration of time.
This anomaly can only be exploited especially in volatile markets when you have a target of short-term entering and exiting before the market responds to any issue that could cause you loss of your investment.
Active portfolio management brings in the positive attributes of simultaneous and concurrent short-term gains in investment that build up to make huge returns for an investor. Most investors who are conscious of their capital turn to active portfolio management so that they protect the capital from recurrent recessions that happen every 10 years in a consistent manner.
Tactical asset allocation is like keeping your eggs in many different baskets so that if one person suffers huge losses due to fluctuations of market conditions you still have others that bring new returns to cover up for the losses that you made in one. Now you are well equipped to the pros and cons of tactical asset management strategies that help you protect your capital and at the same time spread out your risk as compared to the traditional modes of Asset Management and acquisition you can go ahead and make a decision that is well informed as to what investment strategy will adapt yourself.