Sector rotation

Strategy of overweighting and underweighting GICS sectors based on the economic cycle. Classic rotation: financials and consumer discretionary lead early-cycle; tech and industrials mid-cycle; energy and materials late-cycle; utilities and staples in recession.

Easier to describe in hindsight than execute in real time — sector leadership often shifts months before macro inflections. ETFs: XLF, XLY, XLI, XLE, XLV, XLP, XLU, XLB, XLK, XLC, XLRE.