@article {Faber69, author = {Mebane T. Faber}, title = {A Quantitative Approach to Tactical Asset Allocation}, volume = {9}, number = {4}, pages = {69--79}, year = {2007}, doi = {10.3905/jwm.2007.674809}, publisher = {Institutional Investor Journals Umbrella}, abstract = {This article presents a simple quantitative method that improves risk-adjusted returns across various asset classes. A moving-average timing model is tested in-sample on the United States equity market and out-of-sample on more than twenty additional domestic and foreign markets. The approach is then examined since 1972 in an allocation framework utilizing a combination of diverse and publicly traded asset class indices, including the Standard and Poor{\textquoteright}s 500 Index (S\&P 500), Morgan Stanley Capital International Developed Markets Index (MSCI EAFE), Goldman Sachs Commodity Index (GSCI), National Association of Real Estate Investment Trusts Index (NAREIT), and United States Government 10-Year Treasury Bonds. The empirical results are equity-like returns with bond-like volatility and drawdown, and over thirty consecutive years of positive performance.TOPICS: Security analysis and valuation, statistical methods, mutual funds/passive investing/indexing, performance measurement}, issn = {1534-7524}, URL = {https://jwm.pm-research.com/content/9/4/69}, eprint = {https://jwm.pm-research.com/content/9/4/69.full.pdf}, journal = {The Journal of Wealth Management} }