Tactical asset allocation
A temporary deviation from strategic targets in anticipation of changing conditions, with the size of the deviation and the condition for returning both fixed in advance.
How to read the number
Two things separate it from simply changing strategy: a limit the deviation may not exceed, and a described event after which the weights go back to target.
When the metric lies
Without a written return condition the deviation quietly becomes the new permanent allocation, and a justification for it is assembled after the fact.
Also known as: short-term allocation tilt