But instead of a change in seasons, the trigger for stock-sector investing is the business cycle as it moves from bust to boom to bust. The investing strategy is called sector rotation.

Investopedia / Michela Buttignol 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.

One of the top-performing sectors YTD has been financials, with the popular financial ETF, Financial Select Sector SPDR (NYSEARCA: XLF), already up 6.5% as of Friday’s close. Conversely, one of the ...