Sector Rotation Model:

Legend: Market Cycle | Economic Cycle

This theoretical model is based on Sam Stovall's S&P's Guide to Sector Rotation and states that different sectors are stronger at different points in the economic cycle. The graph above shows these relationships and the order in which the various sectors should get a boost from the economy. The Market Cycle preceeds the Economic Cycle because investors try to anticipate economic effects. The PerfChart at the top of this page tries to help you see this effect.

You can compare the performance of up to ten different stocks, mutual funds, or indices using the PerfChart tool on this page. Enter the ticker symbols you wish to chart in the boxes above and then press 'Go.' If you do not know the symbol for the security you are interested in, use the 'Symbol Catalog' link in the top right corner of this page.