The Impact of Market Volatility on Tactical Investing
May 17, 2023
Market volatility is a common occurrence in the world of investing. When the market experiences significant swings, it can create uncertainty and anxiety for investors. During these times, many investors may turn to tactical investing strategies in an attempt to capitalize on the market’s movements. However, it’s essential to understand the potential risks and benefits of this approach.
Tactical investing involves actively adjusting a portfolio’s asset allocation in response to changing market conditions. This approach differs from a passive buy-and-hold strategy, where investors maintain a consistent portfolio allocation regardless of market movements. The goal of tactical investing is to outperform the market by capitalizing on short-term trends and opportunities.