Tactical Vs. Strategic Asset Allocation And Investing: What's The Difference?

This article was originally published on this site

This week, Adam D. Koós, CFP, CMT discusses the two “main” types of active investing:

Strategic: Staying invested in the strongest investments within the strongest industry groups, within the strongest sectors, within the strongest asset classes, REGARDLESS of whether the stock market is in an up or downtrend, and…

Tactical: Staying invested in the strongest investments within the strongest industry groups, within the strongest sectors, within the strongest asset classes, with the addition of a technical-analysis-driven trend-following overlay that attempts to avoid the catastrophic, life-changing stock market crashes.

Adam goes over the similarities and differences between the two, pros and cons, and helps to explain which strategies make the most sense for each type of investor… or perhaps a combination of BOTH makes sense?!

[embedded content]

Original Post

Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.