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What Is Sector Rotation?

By Matthew DiLallo – Updated Feb 22, 2025 at 9:14AM

Key Points

  • Sector rotations occur when investors shift funds across industries in reaction to economic cycles.
  • During an economic contraction, money moves from cyclicals like tech to staples and utilities.
  • In the stock market's accumulation phase, investors tend to buy value stocks, shifting to growth stocks in the mark-up phase.
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