Tag: stock reallocation

For savvy investors tracking the Dow Jones Industrial Average (DJIA), understanding the concept of sector rotation is crucial for staying ahead of the curve. Sector rotation involves shifting investment allocation from one industry sector to another to capitalize on economic cycles and market trends. By recognizing which sectors are poised for growth or decline at any given stage of the economic cycle, investors can potentially enhance returns and reduce portfolio risk. What Drives Sector Rotation? Several factors influence sector rotation, including changes in interest rates, consumer behavior, technological innovation, and geopolitical...