Sector Rotation and Beta Tilts

How cyclical, defensive, high-beta, and low-beta tilts change across macro states.

Category: Macro

Risk-on tilt

When risk is on, the macro analyst can prefer higher market beta, cyclical sectors, growth, small-cap, and momentum where gates support the evidence.

Risk-off tilt

When risk is off, the process shifts toward lower beta, defensive sectors, quality, liquidity preference, and stronger drawdown discipline.

Sector definitions

Materials, financials, industrials, and discretionary are treated as cyclical. Utilities, healthcare, staples, and energy are treated as defensive in the current doctrine.