Title :
Tactical asset allocation: Assessing strategies for predicting and aapting to volatile financial markets
Author :
Coates, R. Cainon ; Maltz, Richard J. ; Mongan, John T., Jr. ; Wheaton, Harrison W. ; Woerner, Lawrence A. ; Lark, James W., III ; Scherer, William T.
Author_Institution :
Dept. of Syst.&Inf. Eng., Charlottesville, VA
Abstract :
This paper explores strategies to predict and adapt to volatile financial markets. The goal of the project is to enhance investorspsila abilities to evaluate current market conditions and invest accordingly, maximizing future returns and minimizing the associated risk. By analyzing predictive indicators and constructing investment models, the project seeks to develop a reliable method to predict and adapt to market movements. Testing indicates there are benefits that come from using various indicators to qualify investment strategies based on market conditions. Incorporating specific factors into investment models allows for the enhancement of returns while simultaneously reducing risks. Given the nature of compound interest, this is a noteworthy improvement that will make a significant difference in the long run.
Keywords :
financial management; investment; minimisation; risk management; compound interest; future return maximization; investment model; market condition evaluation; predictive indicator analysis; risk minimization; tactical asset allocation; volatile financial market; Asset management; Data security; Design engineering; Economic indicators; Investments; Mutual funds; Predictive models; Probability; Systems engineering and theory; Testing;
Conference_Titel :
Systems and Information Engineering Design Symposium, 2008. SIEDS 2008. IEEE
Conference_Location :
Charlottesville, VA
Print_ISBN :
978-1-4244-2365-1
Electronic_ISBN :
978-1-4244-2366-8
DOI :
10.1109/SIEDS.2008.4559711