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Webster's New World Finance and Investment Dictionary » group rotation
group rotation
group rotation definition - finance
A
shift of funds by investors into sectors that have become favored, such as
automobiles, consumer products, or leisure companies. Share prices in those
groups rise as investors buy stocks in those sectors on expectations that the
current economic conditions favor companies in those sectors. For instance, if
the economy is slowing, consumer product stocks likely will benefit because
consumers still will have to purchase basic products. However, shares of steel
or transportation companies may falter, since consumers donÂ’t have to buy their
products.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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