Sector Rotation
Definition
What is Sector Rotation?
Moving investmentAn asset or commitment of money made with the expectation of future income, growth, or both. exposure among sectors based on economic conditions, valuations, or market trends.
Example in practice
How This Looks in Practice
An investorA person or organisation that commits capital with the expectation of a financial return. reduces technology exposure and increases defensive healthcare holdings.
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Related Terms
Common Stock
A share that usually carries voting rights and a residual claim on a company's profits and assets.
Equity InvestingOrdinary Share
The standard ownership share in a company, generally equivalent to common stock.
Equity InvestingPreferred Stock
A class of share that usually has priority over ordinary shares for dividends and liquidation proceeds.
Equity Capital MarketsInitial Public Offering
The first public sale of a private company's shares, after which the shares may trade on an exchange.