Is investing in different countries considered sector rotation?

Investing in different countries can indeed be considered a form of sector rotation, especially in the context of global investment strategies. Sector rotation typically refers to shifting investment capital from one sector of the economy to another in response to changing economic conditions or market cycles. While this is often associated with domestic sectors (like technology, healthcare, etc.), the concept can extend to geographic sectors as well.

When investors allocate capital to different countries, they are often seeking to take advantage of varying economic conditions, growth prospects, or even industry compositions in those regions. For example, if an investor believes that emerging markets will outperform developed markets due to higher growth rates, they may shift their investments from established economies to developing nations. This strategic reallocation based on economic conditions mirrors the logic behind sector rotation.

Thus, viewing investments in different countries through the lens of sector rotation is accurate, as it reflects an adaptive approach to taking advantage of global economic cycles and the relative strengths of various markets.