Sector Rotation Strategy: Diversification With a Tilt | Scottrade, Inc.
Portfolio diversification suggests that you would have adequate exposure to multiple sectors at the same time. However, it’s highly unlikely that all stock sectors will perform equally the same at the same time. Some invariably will do better than others. A sector rotation strategy would be one way to act on that. The goal, quite simply, is to invest more heavily in sectors that you expect will outperform other sectors over some period of time. Conversely, you would reduce your exposure to sectors that you
My Comments: Sure this is much to the advantage of the brokerage house.