That said, rebalancing has the potential to enhance returns — especially if you're rebalancing
among stock market sectors or among bond market sectors.
A sector rotation strategy is a way of investing where you try to predict
which stock market sectors will be in next be in favour.
Again, the overall conclusion is that there's a pretty high correlation between
various stock market sectors, and if anything, those correlations have been increasing in recent history.
The Quarterly Sector Update, including the Sector Scorecard, represents input from 3 discrete Fidelity investment teams — each with unique insights about sector investing — to provide a comprehensive view of the performance potential of the 11 major
US stock market sectors over multiple investment horizons.
For the core: a long - term combination of passive equities and bonds; for the satellite portion: active commodities,
stock market sector strategies, corporate bonds, FX, Futures, direct stocks strategies and ETO (Exchange Traded Option) strategies.
In the US, 9 out of 11
stock market sectors are positioned to finish in positive territory — 8 of which have gained double digits, as of December 20 (see Sector performance table).
All stock market sectors fall into disfavor at times.
You could do that because you'd no longer be tracking stocks, but
stock market sectors.
Although the term «bull market» refers in a general sense to any market or
stock market sector that is going up, the strict definition is a market that has risen at least 20 percent.
A sector rotation is a strategy that relies on selling shares from your portfolio in one
stock market sector and buying shares from another stock market portfolio.
If
a stock market sector is up, there is an even better probability that a stock in that sector will be up.