Investing Dictionary
Strategies

What is Sector Rotation?

Moving money between sectors depending on the economic cycle

Full Explanation

Different sectors outperform at different points in the economic cycle. Investors rotate into defensive sectors (healthcare, utilities) during downturns and into cyclical sectors (tech, consumer discretionary) during expansions.

Pro Tip

Timing sector rotation perfectly is very hard. Most retail investors are better off staying diversified.

Related Strategies Terms

Buy and Hold

Buy stocks and keep them for years

Contrarian Investing

Buying what everyone else is selling, and selling what everyone is buying

Dollar-Cost Averaging

Invest a fixed amount every month no matter what

Index Investing

Buying funds that track the whole market instead of picking stocks

View all Strategies terms →

Track Real Stocks on Mr. Guy Invests

Free portfolio tracker, AI tutor, hedge fund tracker, everything explained in plain English.

Create Free Account

Free forever. No credit card needed.