Which term describes the strategic use of various investments, including real estate?

The term that best describes the strategic use of various investments, including real estate, is tactical asset allocation. This approach involves actively adjusting the proportions of different asset classes in a portfolio based on market conditions and economic forecasts. Investors using tactical asset allocation aim to capitalize on perceived opportunities or trends by overweighting or underweighting certain investments, thereby seeking to enhance returns while managing risk.

This method contrasts with static portfolio management, which maintains fixed asset allocation percentages regardless of market changes, and passive investment strategies that typically follow a long-term approach with minimal adjustments based on market movements. Reactive asset allocation focuses on responding to market changes rather than strategically positioning investments ahead of time, which is not aligned with the proactive nature of tactical asset allocation.

By emphasizing strategic adjustments and incorporating various types of investments like real estate, tactical asset allocation allows investors to be more flexible and responsive to the evolving financial landscape.