Outline the rationale for sector rotation-02223
This subjective question is related to the book/course
vu mth001 Elementary Mathematics.
It can also be found in
vu mth001 Mid Term Solved Past Paper No. 1.
Question 1: Outline the rationale for sector rotation?
Answer:
This strategy is involving the shifting sector weights in the portfolio for taking advantage of those sectors That are expected to do relatively better and avoid or deemphasize those sectors. That are expected to do relatively worse. Investors employing this strategy are betting that particular sectors will repeat their price performance relative to the current phase of the business and credit cycle.
