Market Timing Strategy of Travel and Leisure Sector in Borsa Istanbul Alp Polat*, Tuba Sevil** and Guven Sevil*** Recent literature introduces that travel and leisure sector is found to be useful to implement a timing strategy. This strategy involves tracing discount rate changes and investing. Changes assume that buying travel and leisure stocks is beneficial due to expansive monetary conditions. If discount rate changes become negative, the portfolio should be shifted to government debt securities. The strategy is tested using Turkish market data. Values of the sector index and government debt securities are employed in the analysis. The announcements of Central Bank of Turkey determine expansive and restrictive monetary periods. Treynor and Sharpe ratios are calculated in order to compare the strategy with passive strategy benchmark. The results showed that market timing strategy is better alternative to passive investment decisions in travel and leisure sector. Market timing sustains higher portfolio performance measures. The study presents importance of monetary decisions of the Central Bank and profitable strategy for investors. JEL Codes: F45, G11 and G15