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Sector rotation

The shift of money from one sector to another as the economic cycle changes.

Macro & RatesIntermediate

Definition

In early recoveries, cyclical sectors such as financials and industrials often lead; later, defensive sectors like utilities and health care tend to hold up better in slowdowns. PDB's Theme Radar describes where relative strength has been.

Watch out for

Rotation patterns are loose tendencies. Descriptions of past leadership do not predict what comes next.

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