What type of trading strategy do tactical traders commonly employ?

Tactical traders often employ global macro strategies because these strategies focus on making investment decisions based on the analysis of global economic trends, policies, and events. This approach allows traders to capitalize on short-term opportunities in various asset classes, including equities, bonds, currencies, and commodities, driven by macroeconomic data and geopolitical developments.

Global macro strategies are dynamic and responsive, which aligns with the tactical trader's goal of adjusting positions quickly based on changing market conditions. This type of trading typically involves a comprehensive understanding of economic indicators, central bank policies, and international relations, enabling tactical traders to anticipate market movements and react accordingly.

In contrast, the other choices tend to involve longer-term investment horizons or specific asset class focuses, which do not align with the opportunistic and adaptive nature of tactical trading. For example, long-term fossil investments or retirement fund management focuses on strategic asset allocation and long-term growth, while fixed income investments often prioritize stability and income over short-term capitalizing on market movements.