Sector rotation is a feature of many markets and Japan is no exception.
For the last two years there have been three turning points for both the larger and smaller of the Japan Analytics 30 All Market Sectors two of which occurred in the early summer and one in December.
For larger sectors, the most volatile have been, FB&T, Banks, Non-Bank Finance, and Telecommunications which have been either a bottom 3 or top 3 large sector at least three times.
For smaller sectors the volatile sectors are Internet, Metals and REITs.
The best performing large sectors since January 2016 are Other Consumer Products, Chemicals and Technology Hardware, the worst being Banks, Autos and Non-Bank Finance. The best small sectors are Commercial Services, Restaurants and Building Materials and the worst are Multi-Industry, Utilities and Media.
The charts below show the cumulative percentage changes in sector market weights since January 2016.
Will there be another rotation turning point before year-end?
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