How to Spot a Sector Rotation with ETFs

By: ETFdb
Making the right call on whether we’re headed for a bull or bear market is only half the battle; knowing which sectors are poised to outperform given the prevailing economic conditions is how many professional money managers “beat the market.” Commonly referred to as sector rotation, this timeless investing approach revolves around picking market leaders at different turning points throughout the business cycle. This sort of strategy requires more than a surface level understanding of the business cycle and the underlying economic forces; thoughtful analysis and careful planning are necessary before pulling the trigger on the sectors that are most favorably positioned to outperform during each phase of the cycle [see also 3 Sector Rotation Strategies ETF Investors Must Know]. Investors can start to hone their business cycle investing skills by first understanding how to identify when a sector rotation is in fact taking place. This process can at times [...] Click here to read the original article on ETFdb.com. Related Posts: Sector ETF Highlights and Lowlights from Market Bottom 3 Sector Rotation Strategies ETF Investors Must Know Which Sector ETFs Are Cheap? All Better Now? Many ETFs Climb Back Near Pre-Recession Levels Fidelity Rolls Out 10 Sector ETFs (FDIS, FSTA, FENY)
Making the right call on whether we’re headed for a bull or bear market is only half the battle; knowing which sectors are poised to outperform given the prevailing economic conditions is how many professional money managers “beat the market.” Commonly referred to as sector rotation, this timeless investing approach revolves around picking market leaders at different turning points throughout the business cycle. This sort of strategy requires more than a surface level understanding of the business cycle and the underlying economic forces; thoughtful analysis and careful planning are necessary before pulling the trigger on the sectors that are most favorably positioned to outperform during each phase of the cycle [see also 3 Sector Rotation Strategies ETF Investors Must Know]. Investors can start to hone their business cycle investing skills by first understanding how to identify when a sector rotation is in fact taking place. This process can at times [...]

Click here to read the original article on ETFdb.com.

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