In ____ strategy, certain economic sectors or industries are overweighted relative to the benchmark in anticipation of the next phase of the business cycle.

Question

Quizplus · Accepted Answer

Sector rotation strategy involves overweighting certain economic sectors or industries in anticipation of the next phase of the business cycle. By rotating into sectors that are poised for growth during the next phase of the cycle, investors can potentially increase their returns. The other choices, price momentum, earnings momentum, return rotation, and passive momentum, do not involve overweighting specific sectors to take advantage of the business cycle.

In ____ Strategy, Certain Economic Sectors or Industries Are Overweighted