The stock market is never led by the same sectors for long. Leadership rotates, sometimes dramatically and sometimes gradually, as the economic cycle shifts and investors reposition for the next phase. This phenomenon, known as sector rotation, is one of the most powerful and least understood forces in market movement. The same index can produce very different returns depending on which sectors are leading at the time, and the same economic news can be positive or negative for different sectors depending on where we are in the cycle. Understanding sector rotation is essential for any investor who wants to read…
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