Cyclical tactical asset allocation is a dynamic investment strategy using an approach based on economic cycles.
As stock price and bond yield movements are connected to changes in the economic environment.
Guidelines to these patterns can be followed to ascertain changes in market direction to a varying level of accuracy.
This is very helpful to an investment decision because an exact "reversal point" is practically impossible to determine.
Investors can use this information to improve their performance returns by modifying their strategic asset allocations.