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 relative to the benchmark in anticipation of the next phase of the business cycle. This strategy aims to capitalize on the cyclical nature of markets and to generate higher returns by investing in sectors that are expected to outperform in a particular phase of the cycle. Price momentum and earnings momentum are different strategies that focus on stock price and earnings trends, respectively, and are not related to sector allocation. Return rotation strategy is not a common investment strategy, and there is no clear definition for it.

In ____ Strategy,certain Economic Sectors or Industries Are Overweighted Relative