Schweser QBank Q:14818

Which of the following statements regarding asset allocation strategies is FALSE? C) Tactical allocation is a contrarian investment strategy. C is not that answer. Can someone please explain to me how tactical allocation is a contrarian investment strategy? -Thanks.

TAA is trying to capitalize short-term market mispricing. it does not believe “the market price is right”. therefore, it has to take a position against what current market indicates. so, it’s contrarian by nature.

Great thanks rand0m makes sense.