Sunday, June 22, 2008

Sector Rotation Doing OK





The relative strength sector rotation scheme I described in my 'Sector Rotation' post has performed a little better than SPY over the past year (see second plot above). The first plot shows the results for the sector rotation scheme over the past several years. The Claymore/Zacks Sector Rotation ETF (XRO), described in my 'Sector Rotation Again' post, has done better than my scheme over the past year (see the third plot above).

The sector rotation approach may be a viable means of increasing your return versus SPY, but it will be a rough ride with the continuing market turbulence.

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