Equity Investing

Sector Rotation

Definition

What is Sector Rotation?

Moving investment exposure among sectors based on economic conditions, valuations, or market trends.

Example in practice

An investor reduces technology exposure and increases defensive healthcare holdings.

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A share that usually carries voting rights and a residual claim on a company's profits and assets.

The standard ownership share in a company, generally equivalent to common stock.

A class of share that usually has priority over ordinary shares for dividends and liquidation proceeds.

The first public sale of a private company's shares, after which the shares may trade on an exchange.

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