Banach Wealth Management Aug. 27, 2009 Draft Guide Chapter 14
Lifetime Wealth Flow Guide Draft
Section VI. Risk Aware Decision Making
Chapter 14. Asset Allocation - Tactical Decisions
Strategy without tactics is the slowest route to victory;
Tactics without strategy is noise before defeat.
-Sun Tzu, Chinese military strategist, 490 B.C.
Key Points
- Tactics should adjust strategic risks
- Riskier investment portfolio strategies
require more sensitive tactical controls - Set tactical risk control boundaries within
emotional and financial tolerances - Recognize the risks that specific tactics
add to strategies