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Sector Rotation

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Sector rotation
An active asset management strategy certain sectors, that tactically overweights and underweights depending on expected performance. Sometimes called rotation.
Sector Rotation
An investment strategy in which a portfolio overweights or underweights certain sectors in accordance with expected performance. Sector rotation is a form of active investment management; the portfolio manager observes market trends and alters the composition of the portfolio in order to earn the highest possible return. Sector rotation is fairly high risk, as a portfolio's systematic overweighting and underweighting means that is not efficiently diversified. See also: Markowitz portfolio theory.
sector rotation
An investment strategy involving the movement of investments from one industry sector to another in an attempt to beat the market. For example, an investor might rotate investments among consumer durables, technology, and energy securities as economic fundamentals and valuations in each of these sectors change. Also called group rotation.

Sector rotation. Sector rotation refers to the shifting of investments among different sectors of the economy.

At any given time, certain sectors will be performing better than others. Investment managers use sector rotation strategies to capitalize on the current economic cycle and maximize profits.
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Such sector rotation will hit the rating of defensive earnings as risk appetite rises and as defensives are sold to buy recovery situations.
Investors should look at BAe Systems; SHARE WATCH by The Journal (Newcastle, England)
Eoe1/4EoLooking forward, the managersEoe1/4ao view is that the market will be led more by fundamentals and earnings as opposed to flows or sector rotation,Eoe1/4Y said Demartini.
S&P Fund Services Eo,e1/4" Emerging economy to lead world out of ... by Albawaba.com
Morgan Stanley's Huw van Steenis said: "Whilst our strategic view about the outlook for banking earnings and book value growth remains bearish, and we recognise the range of possible outcomes is particularly wide, as a trading call we see good opportunities in banks as major sector rotation should lift the banks sector higher.
Banks - cheap or ripe for more falls? by guardian.co.uk / guardian.co.uk
 
 
 
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