Glossary entry

English term or phrase:

rotation out of growth and momentum stocks

English answer:

movement of investment funds out of the growth and momentum sector (into a different sector)

Added to glossary by Yvonne Gallagher
Jun 4, 2015 23:02
9 yrs ago
2 viewers *
English term

rotation out of growth and momentum stocks

English Bus/Financial Finance (general)
Hi!

This piece is taken from a Bank's Economic Outlook (quarterly report). I cannot figure out this sentence I need to translate into Spanish, so if someone can rephrase it for me, I'd really appreciate it.

TIA!

In March 2014, Federal Reserve Chair Janet Yellen made some “late cycle” comments that caused a ***huge rotation out of growth and momentum stocks***.
Change log

Jun 9, 2015 08:10: Yvonne Gallagher Created KOG entry

Jun 10, 2015 11:16: Yvonne Gallagher changed "Edited KOG entry" from "<a href="/profile/1300525">Yvonne Gallagher's</a> old entry - "rotation out of growth and momentum stocks"" to ""movement of investment funds out of the growth and momemtum sector (into a different sector)""

Responses

+1
38 mins
Selected

moving stocks out of the growth and momemtum sector (into a different sector)

here's a definition of "rotation"
http://www.investopedia.com/terms/s/sectorrotation.asp

and this section might help your understanding as it explains the remark in more detail

http://www.calamos.com/~/media/documents/product-literature/...

What factors influenced performance over the period?
During the period, the Fund experienced a solid gain, although it did not keep pace
with the Russell 3000 Growth Index. Initially, the Fund benefitted from the market’s preference for cyclical growth areas and businesses with higher growth expectations, which outperformed slower-growing and more defensive sectors during this time. Growth was supported by the market’s view that the economic recovery was continuing at a slow-and-steady pace.
In early spring, however, the market experienced a strong rotation out of higher-growth companies and into more value and defensive stocks with lower valuations within the broad market and the growth market. This rotation was prompted by Federal Reserve Chair Janet Yellen’s March 2014 comments that interest rates could start rising sooner than expected, though she later softened her stance on the timing. She also voiced her view that certain higher-growth areas of the market may be overvalued. Technology and health care sectors were especially hurt by the subsequent sell-off..."

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Note added at 39 mins (2015-06-04 23:41:46 GMT)
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Apologies! typo: momentum

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Note added at 39 mins (2015-06-04 23:42:43 GMT)
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http://www.investopedia.com/terms/m/momentum_investing.asp


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Note added at 43 mins (2015-06-04 23:46:11 GMT)
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of course you could use the noun "movement" (of stocks...) rather than the verb when translating...

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Note added at 4 days (2015-06-09 08:09:05 GMT) Post-grading
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Glad to have helped
Peer comment(s):

agree Charles Davis : I'd describe it as a huge shift of investment funds, rather than of actual stocks: investors massively sold growth stocks (in companies expected to grow) and momentum stocks (those that have been rising) and bought stock in other sectors.
1 hr
Thanks Charles, yes, "investment funds"might be clearer here as that what the fund managers are moving around
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4 KudoZ points awarded for this answer. Comment: "Thanks!"
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