Practice of rotating (moving) investments from one industry group (sector) of the economy to another, in an attempt to beat the market by anticipating changes in the economic cycle. As this cycle goes through its stages, stocks of one industry sector outperform those of the other sectors and then are superseded by stocks of the same or other sectors. Professional investors try to forecast the impending changes, and rotate their investments accordingly for maximum returns. They also look for stocks that are coming into public favor for one reason or another and try to benefit from these changes by strategically rotating their assets. also called sector rotation.