Hi Allen, Re: Sector Rotation Cycle.......................
Remember that the business cycle and the market cycle are out of phase as that one diagram shows. While the theory is sound, the practical application of that theory is more difficult in that reality and theory don't always look the same. Throw in the interest rate cycle (or recent lack of cyclical activity) and that chart would get pretty messy.
There really hasn't been good sector rotation to follow since the Dot Com bubble and the 2008 Panic threw it for yet another loop. So, while longer cycle things like capital equipment expenditures and bricks/mortar factory expansions are different from toilet paper, it's a very tough market cycle to gauge these days.