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sector rotation

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Financial Dictionary

Sector Rotation

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

Investopedia Commentary

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.

Related Links

Sector Rotation: The Essentials
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The Ups And Downs Of Investing In Cyclical Stocks
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See also: Business Cycle, Contraction, Economy, Portfolio Manager, Sector, Sector Fund

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Financial Dictionary

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.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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