Asset allocation strategies are a frequently discussed topic with increasing importance in times of crisis. Such strategies should prevent us from price deterioration in bad times and ensure high return potentials in good times. More and more tactical asset allocation funds emerge and promise better returns than simple strategy funds. They always try to be on the right market side, in up as well as in down phases. This seminar paper deals with some basic question about what strategic and tactical asset allocation is, when should it be used and if these strategies are appropriate in a highly uncertain environment like the current. It should give the reader a broad overview about the topic by referring to different accepted theories and studies. First the development of asset allocation methods will be described resulting in strategic and tactical asset allocation and an evaluation of them. Furthermore a link toward uncertain market conditions will be compounded.
Index
1. Introduction
2. Development of Asset Allocation Methods
3. Description of Strategic Asset Allocation
4. Description of Tactical Asset Allocation
4.1. Elemental Shifting Rules
4.2. Portfolio Insurance
4.3. Best of n risky assets
4.4. Protect Spending
4.5. Distinction between Strategic and Tactical Asset Allocation
5. Strategic versus Tactical Asset Allocation
5.1. Evaluation of Strategic Asset Allocation
5.2. Evaluation of Tactical Asset Allocation
5.3. Which Asset Allocation Decisions does affect returns most?
6. Asset Allocation under High Uncertainty
6.1. The Difficulty of Forecasting
6.2. The Importance of Risk and Correlation
6.3. Taking Inflation into Account
7. Conclusion
- Quote paper
- BSc Daniel Hosp (Author), 2012, Strategic versus tactical asset allocation in markets with high uncertainty, Munich, GRIN Verlag, https://www.grin.com/document/209080
-
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X.