A shift of investment capital from one asset class or sector to another.
Market rotation is a strategic shift in investment portfolios, where capital is moved from assets or sectors that are perceived to have peaked or are underperforming to those that are expected to perform better. This can be driven by changes in economic conditions, interest rates, investor sentiment, or sector-specific developments. Rotations can occur across various asset classes, such as stocks, bonds, commodities, and cryptocurrencies, or within specific industries or market capitalizations.