We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.


Sector Rotation

The S&P 500 comprises maybe a dozen different sectors. Energy, transportation, communication, consumer goods, real estate, banking, etc. At any one time, one sector can be hot, and then quarters pass, and it's... not. So where does the money go from the hot energy sector when it cools? Well, it rotates from that energy sector into the transportation sector for a while, and rotates into the banking sector after that. The endless wheel keeps turning.

Find other enlightening terms in Shmoop Finance Genius Bar(f)