SANDI LYNNE

When you visit an appliance store in February, do you expect to find air conditioners or space heaters? Do you shop in summer for skis or bathing suits? Do you shop for Christmas in March or November? Investors often forget that buying stock means buying a piece of a company that sells goods and/or services. It's only logical that companies experience higher demand in some months, lower in others. Sales and earnings can't help but fluctuate with demand, as does investor enthusiasm for effected stocks. The result? Rotating corrections, also called sector rotation... When investing, think of yourself as a shopper and the universe of stocks as mere inventory in a financial department store. Buy what's in season and sell what's not. Then take it one step further. Buy at discounted prices, just before everyone else realizes a new season is about to begin. Sell when prices are highest, before everyone else realizes the season is ending.