There are few things that we Americans get worked up about as much as presidential elections.
One candidate, some of us feel, would be a disaster for the country, while the other would lead it in the right direction. That seems to hold true every four-year cycle, but this year emotions are pitched especially high. Spurring us along is the financial news media, which breathlessly advises us about how to invest for a Clinton presidency, or a Trump presidency.
What are tactical adjustments? In their 1986 asset allocation research, Brinson, Beebower, & Hood defined tactical asset allocation as:
“…strategically altering the investment mix weights away from normal in an attempt to capture excess returns from short-term fluctuations in asset class prices (market timing);”