What is one outcome expected from Tactical asset allocation strategies?

Tactical asset allocation strategies aim to enhance returns by making short-term adjustments to an investment portfolio based on the investor's market outlook. This approach involves analyzing market conditions and economic indicators to identify opportunities where the allocation of assets can be adjusted to capitalize on expected movements in the market.

By adapting funds based on market assessments, investors can potentially take advantage of shifts in market trends, allowing them to increase exposure to asset classes that are expected to perform well and reduce exposure to those that may underperform. This flexible and responsive strategy is what defines tactical asset allocation, making it a dynamic alternative to more static investment approaches that do not account for market variability.

In contrast, options suggesting fixed returns regardless of market conditions or no changes in asset allocation do not reflect the core principle of tactical strategies, which are inherently responsive and adaptable. Consistent yearly rebalancing may be part of an investment strategy, but the essence of tactical asset allocation is the proactive management of assets in reaction to ongoing market developments.