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Sector Rotation rankings

Sector Rotation is an advanced high-risk, high-reward strategy. It's important that you not launch a Sector Rotation strategy without carefully studying the explanatory article which lays out the pros and cons.

The preliminary monthly rankings for Sector Rotation are published for SMI web members on the first business day of each month.

Update: The historical performance file has been updated through 2008 (membership required). For the 1990-2008 period, the theoretical average annual return was 24.2%. That includes the super-profitable dot.com bubble trade in Amerindo Technology which is unlikely to recur; excluding that period, the strategy still returned 18.2% annually.

As the file shows, however, the returns have been very volatile. The returns for the most recent five years, for example, were +12.6%, +46.1%, -1.9%, +28.1%, and -31.5% respectively. It may be profitable, but it's not for the faint of heart.

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