Sector rotation is a popular investment strategy where investors shift their portfolios among different sectors of the stock market based on economic conditions and market trends. One key benchmark used to evaluate the performance of sector rotation strategies is the S&P 500 index, which is made up of the 500 largest publicly traded companies in the United States.
Sector rotation within the S&P 500 is a phenomenon where different sectors of the stock market outperform or underperform each other based on various factors like economic conditions, market sentiment, and industry-specific events. Understanding historical sector rotation patterns can be a valuable tool for investors in predicting future market trends and making informed investment decisions.
Sector rotation is a popular investment strategy that involves shifting assets between different sectors of the market based on economic conditions and trends. One of the most widely followed indices for sector rotation is the S&P 500, which represents the performance of 500 large-cap U.S. companies across various sectors.