sector rotation

Sector Rotation

The action of a mutual fund or portfolio manager shifting investment assets from one sector of the economy to another.

Notes:

Not all sectors of the economy perform well at the same time. Sector rotation is a portfolio manager's attempt to profit through timing a particular economic cycle.

See also: Business Cycle, Contraction, Economy, Portfolio Manager, Sector, Sector Fund

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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.

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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.