photo credit: https://www.linkedin.com/in/ronnie-saliba/
Key Takeaways
- Sector rotation helps investors adapt to different stages of the economic cycle for stronger portfolio performance.
- It involves shifting investments between sectors that are expected to perform well based on current market conditions.
- Data analysis, including GDP, inflation, and earnings reports, is key to identifying promising sectors.
- Properly executed, sector rotation enhances returns while mitigating risk and protecting capital during downturns.
- A disciplined, rules-based approach minimizes timing errors and transaction costs.