Tactical Asset Allocation (TAA)
Adjusting a portfolio's mix of assets over time, within rules, in response to the market environment — as opposed to holding fixed weights regardless of conditions.
Tactical asset allocation (TAA) shifts how much a portfolio holds in each asset class as the environment changes, following an explicit rule set rather than a hunch. It sits between passive buy-and-hold, which keeps fixed weights, and active stock-picking.
The aim is not to predict the market but to respond to it in a disciplined, repeatable way — trimming exposure when a regime deteriorates and restoring it when conditions improve. Witan Way's strategies are examples of rules-based tactical allocation.