Tactical Allocation 2.0: Lower Drawdowns, Higher Sharpe

Improvements to a Simple, Effective Asset Allocation Framework

Hi there, time for a new Weekly Research Insights post. Quick scheduling note: These will now come out on Fridays.

In a recent post, I reviewed new research and tested a simple tactical allocation framework that matched SPY’s returns while delivering much lower volatility and smaller drawdowns. Today, I revisit it with a straightforward tweak that further lifts returns and reduces risk, historically delivering SPY-like performance with less than half the max drawdown and a 40% higher Sharpe ratio.

More details below.