Avoid the Temptation to Play the Rotation Game With Sector Funds

There's good reason that the concept of buy and hold exists: Buy and sell and buy and sell typically doesn't work.

With so many sector mutual funds out there these days, you may be tempted to bet on the cycles of these industries. But the truth is: Rotating from sector to sector, whether via funds or individual stocks, just doesn't work for most people.

Many sectors do rise and fall according to business or economic cycles. Maybe you think you can catch the cycle of one sector, ride it up, get out at the top and then move on to another sector that's just starting to take off. ...