Tactical Asset Allocation is an investment strategy that involves adjusting the mix of asset classes in a portfolio based on short-term market forecasts. Investors actively shift their investments among stocks, bonds, and other assets to capitalize on perceived market opportunities or to mitigate risks. This approach contrasts with strategic asset allocation, which maintains a fixed asset mix over the long term. The goal of tactical asset allocation is to enhance returns by taking advantage of market trends and economic conditions. By regularly reassessing the market landscape, investors aim to optimize their portfolio's performance while managing potential risks associated with market volatility.