I’ve noticed recently that sector/industry rotation is classified as “top-down”, while style rotation is characterise as “bottom-up”. I would assume that style rotation is “top-down” as well so what am I overlooking here?
Style rotation would be a bottom-up. Just to list some of the factors around style rotation:
- Value
- Price momentum
- Growth
- Quality
All four screams bottom-up assessment rather than top-down. Hope it helps!