I have wanted to do an overview video of Sector Rotation for Best of Us Investors for a while. In this video I give a high level view of the theory of Sector Rotation and how it can be used to forecast the flows of money into different sectors at different times in the market. I also include my current analysis of where the next sector rotation is likely to occur.
My last video on Sector Rotation was almost a year ago. The signals for where the money was flowing into and out of stocks was not nearly as clear as it is now. Stocks in Consumer Staples, Healthcare, and Utilities are considered Defensive plays in a market going down. It is clear by the winners and losers across the market and in my own trade calls which...
This week's dip on the AMEX:SPY revealed something important within the Sector Rotation model. For the last quarter the Sector Rotation model has been giving mixed signals following the clear predictive path it forecasted coming out of March 2020. This recent price shock provided a glimpse into where the money is moving right now!
My last video about Sector rotation was in March 2021 where I talked about the Consumer Staples sector. NYSE:PG and NYSE:JNJ have so far performed to expectations. It is worth looking at the model once more now to see where the next potential money flow will be. From March 2021: Sector Rotation theory suggests that from market bottoms the two sectors that...