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Sector rotation is a pretty popular strategy. The manager stays fully invested, but they move the investment to different sectors, trying to time which sectors
by oillio 8y ago
Sector rotation is a pretty popular strategy. The manager stays fully invested, but they move the investment to different sectors, trying to time which sectors will be hotter than others.
Just one example of a way to stay fully invested while also timing the market.
- tabtab 8y agoAn example: expensive products, like new cars and refrigerators, tend to slump more during general downturns. Thus, fund managers may shift out of car & fridge stocks into something with smaller consumer price tags, like soda stocks.
- wtvanhest 8y agoSector rotation is not considered timing by professional investors.