An investment strategy that entails shifting the portfolio into industry sectors that are expected to outperform others based on macroeconomic forecasts is termed ________.
A) sector rotation
B) contraction/expansion analysis
C) life-cycle analysis
D) business-cycle shifting

Question

Quizplus · Accepted Answer

Sector rotation involves shifting the portfolio into industry sectors that are expected to outperform others based on macroeconomic forecasts. This strategy aims to capitalize on the business cycle by investing in sectors that are expected to perform well during specific economic phases. The other options, contraction/expansion analysis and life-cycle analysis, do not specifically focus on sector selection based on macroeconomic forecasts. "Business-cycle shifting" is not a commonly used term in investment strategies.

An Investment Strategy That Entails Shifting the Portfolio into Industry