Sector Rotation in Real Estate

[Tom Juhn]

This is more of a theory question. In stock investing there is an investment strategy called sector investing. The theory goes as the economy moves from expansion to contraction and back again, there are certain sectors of the market you need to be in, e.g. energy, consumer staples, tech, chemicals.

My question is does real estate work the same way. Are there times you should be in note buying or multifamily? Are there other times you should be in cash or flipping?

For example, if you felt in 2006-2008 that a bubble was forming, other than cashing out and sit in cash, could you have been investing elsewhere in real estate?