11How the 10 Market Sectors Fit into the Rotation Process

Stock Sectors Discount their Industries

What are Sectors and Industry Groups?

The Sector Rotation Process—An Overview

Inflation- versus Deflation-Sensitive Groups

How the Stock Market Forecasts Trends in Yields and Commodity Prices

Leading/Lagging Group Relationships

Stock Sectors Discount their Industries

In earlier chapters we established that the business cycle goes through a set chronological sequence in which various asset classes are successively favored. This process can be extended further by classifying the equity market into 10 or so sectors, each of which benefits from a specific stage in the cycle. For example, when the cycle is mature and capacity constraints greatest, commodity-driven ...

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