The movement of money by one investor or the overall market from one or more...
A trick used by brokers to make us trade more. The brokers try to anticipate which parts of the economy will do best in the next few months and consequently advise you to shift funds from one sector to another. The net effect is that everyone tries (unsuccessfully) to outguess each other and you end up paying more in charges.
An investment approach in which a portfolio manager focuses primarily on industries that are expected to outperform the broader market, depending on the current stage of the economic cycle. Industries that are expected to underperform are "rotated" out of the portfolio. Also known as "industry selection."
An investment process where the investor seeks to increase returns by opportunistically switching from one sector to another.
An active asset management strategy certain sectors, that tactically overweights and underweights depending on expected performance. Sometimes called rotation.
An active management strategy in which assets are shifted to sector, style, or geographic regions in order to overweight, and thus have a higher exposure in the portfolio.
Market sectors such as banks and telecoms typically go through periods of several months when they perform relatively well compared with a general market index like the FTSE100, followed by periods in which they do less well than the average. Many investors try to ride these waves of sector performance, which are of course mainly caused by the total pattern of investor behaviour.
A strategy that uses elements of market timing to identify business sectors of the economy that are in a position to either under or outperform. For example, if an investor owned the iShares Dow Jones U.S. Utilities ETF (Amex: XLU), but felt this index was ready to underperform versus other sectors, one might consider selling this holding in favor of another one with a better outlook. In short, this particular investor would be exiting or rotating out of one sector for another.
Sector rotation is a term normally applied to stock market trading patterns. In this context a sector is understood to mean a group of stocks representing companies in similar lines of business.