Sector rotation
In plain English
When investors move money out of one industry and into another. Sector rotation can be small (one investor rebalancing) or large (market-wide shifts between, say, tech and energy).
Formal definition
The practice of reallocating capital between industry sectors in response to changing macroeconomic conditions, business-cycle stage, or relative valuation. Observable in disclosure data when an investor exits one sector's holdings while initiating positions in another within a short window.
Example
Pelosi selling $15M of Apple and a few weeks later buying $375K of NVIDIA — both filed on the same PTR — is a tiny sector-rotation pattern. Out of consumer electronics, into semiconductor / AI.
Related
Educational only. TrustFirst is not a registered investment adviser and does not provide personalized investment advice. This definition is written to teach the concept; it is not a recommendation to take any specific action.