Sector Rotation : A Strategic Approach
Sector rotation strategies offer investors a valuable framework for navigating the complexities of market cycles and capturing opportunities in relative sector performance. While certain sectors often align with specific phases of the economic cycle, these patterns are tendencies rather than guarantees. The business cycle approach, with its focus on intermediate time horizons, provides a practical method for adjusting sector exposure as economic phases shift. The article explains in detail the effects of sector rotation and highlights what investors must look out for