Friday, June 27, 2008

If you have been following the stock market, you probably heard people discussing about sector rotation. I first learned about this sector rotation from Conrad Alvin Lim when I attended wealth academy investor seminar by Adam Khoo Learning Technologies Group (AKLTG).

The sector rotation model is based on Sam Stovall’s Standard & Poor’s Sector Investing. The model states that different sectors are stronger at different stages in economic cycle. This strategy involved the movement of money from one industry to another in the attempt to beat the market up down cycle.

Sam Stovall is the chief investment strategist for Standard & Poor’s Equity Research Services. His famous column, Sam Stovall’s Sector Watch appears on http://www.businessweek.com/investing.

I placed the link to an article I found in investopedia.com, Sector Rotation: The Essentials

Stockchart.com’s interactive SPDR Sector Rotation Chart is found at http://www.stockcharts.com/charts/performance/SPSectors.html

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