Stock Market

The stock market could involve the S&P 500, Dow Jones, Nasdaq, Russell 2000 and other global markets including the Chi-next, DAX, Nikkei, MSCI or EAFE. While it's easy to track the individual indexes there is value to look beyond the surface into specific industries, sectors and companies. The stock market is typically divided into 11 key sectors representing major areas of the economy. Within each sector there are a number of publicly traded companies that share the same core focus or client base. Investors interested in investing in a specific sector or area of the economy may look at a sector based portfolio management strategy. The eleven sectors of the stock market include:

1. Financials
2. Utilities
3. Consumer Discretionary
4. Consumer Staples
5. Energy
6. Healthcare
7. Industrials
8. Technology
9. Telecom
10. Materials
11. Real Estate

Each sector will have it's own dynamics which can make it more attractive or less during each market cycle, business cycle or interest rate environment.