Research
Using Macro Factor Dashboards for Tactical Asset Allocation
A disciplined way to include macro factors in a broader process.
Research suggests that macro factors can be significant return drivers. However, little has been published on how to use them to inform investing decisions. T. Rowe Price has developed a process that uses dashboards to integrate macro factors into a broader tactical asset allocation process. Our dashboards can help practitioners filter the historical data to try to predict the impact of macro factors on asset returns, using a framework that incorporates current conditions and that investors can easily replicate. We recommend using macro factors in combination with relative valuations, fundamentals, and other data such as sentiment indicators.
Research in Brief
Using Macro Factor Dashboards for Tactical Asset Allocation
Research
Macroeconomic Dashboards for Tactical Asset Allocation
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