Performance Summary

The business cycle influences the rotation of stock market sectors and industry groups. Certain sectors perform better than others during specific phases of the business cycle. Knowing the stage of the business cycle can help investors position themselves in the right sectors and avoid the wrong ones. The technology sector is the first to turn up in anticipation of a bottom in the economy. Consumer discretionary stocks are not far behind. These two groups are the big leaders at the beginning of a bull run in the stock market. The top of the market cycle is marked by relative strength in materials and energy. These sectors benefit from a rise in commodity prices and a rise in demand from an expanding economy. The market peak and downturn are followed by a contraction in the economy. At this stage, the Fed starts to lower interest rates and the yield curve steepens. Falling interest rates benefit debt-laden utilities and business at banks. Low interest rates and easy money eventually lead to a market bottom and the cycle repeats itself. This strategy helps investors to profit from the changes in the business cycle from the "sector rotation strategy". Sector rotation is the movement of money invested in stocks from one industry to another as investors and traders anticipate the next stage of the economic cycle and make consistent returns in every stage of economy. Rebalancing: Factors that'll influence the rebalancing are Economic Policy, Central Bank Rates, Global development in Industry, etc.