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Tactical Asset Allocation And Global Macro Trading
Posted by GuestPoster in Business, Business Finance
When properly done tactical asset allocation can be mistaken for a global macro portfolio and in a sense it is. A properly applied global tactical asset allocation program is invested in stocks, bond, currency, and commodity markets across the globe. As opposed to a static asset allocation program however a tactical asset allocation policy will only invest in those areas that appear to be undervalued or in a trend or whatever your main criteria is.
So what is the difference between global macro trading and GTAA? The main difference is that while global macro is actively seeking long term and short term ideas, GTAA is primarily seeking longer term moves. There can be several other differences as well but by and large this is the main differentiating factor.
In fact GTAA and macro trading are so similar that many fund companies will have both a GTAA offering as well as a global macro trading offering. This way they can better leverage their research efforts and find more and better profitable investment ideas.
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