“In wartime, truth is so precious that she should always be attended by a bodyguard of lies” Winston Churchill, British Statesman and Prime Minister
Renaissance Investment Group clients stayed put, says Christopher Silipigno. Read the latest article by Eagle sponsored content editor Noah Hoffenberg.
What is rotation risk?
Simply put, rotation risk is the chance that investments in one asset class or category within an asset class that were previously in favor, experiencing strong returns and price appreciation (gains), will become less favored and experience price depreciation (losses). This can happen rather quickly, leaving investors with an asset that lost much of the gains enjoyed when that asset was prized. Worse yet, rotations can create sizeable losses to those that bought the appreciating asset towards the end of its run-up in price.