Sector Rotators Sector Rotators
They use "macro" or "big picture" analysis to establish the economic and political outlook for the markets. For example, they would focus on financial sector stocks coming out of a recession, hoping that monetary policy loosening and falling inflation would lead to lower interest rates which in turn would benefit financial stocks. Later in the cycle they would focus on cyclical and commodity stocks, expecting increasing economic activity would lead to higher prices for commodity stocks. They trade actively, moving into "out-of-favour" industries and sectors. They might own all the stocks in an industry, expecting them all to do well with an increase in their commodity price.
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