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PRICE: SECTOR ROTATION
Answers
1. B. It is the deflation- or liquidity-sensitive groups that lead the market at bottoms, not the inflation- or earnings-driven groups.
2. B. Sometimes, specific changes in the fundamentals will cause it to move out of sequence.
3. end, lead
4. C.
5. A.
6. F.
7. E.
8. D. B and C are technically correct, but are not bull markets as described in the text.
9. B. As described in this chapter, there is a close relationship between the two, but not a precise one. Sometimes, the market ignores the economy, as it did during 2002 when the economy came out of recession but the market declined. Normally, it advances under such conditions.
10. B.
11. B. It’s the other way around. Sectors can be split into industry groups. ...
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