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.
 

Anomaly – Momentum Investing

Next on our list of stock market anomalies that lead to outsized performance, we’re gonna be talking about momentum ... Read More

 

Anomaly – Trading Volume

So does an increase in trading volume help or hurt stocks? Some might suggest that investors should favor stocks with ... Read More

 

Anomaly – Listen to the Insiders

Today we’re talking about insider transactions. That’s whether key employees are buying or selling their company’s stock. ... Read More

 

Anomaly – Listening to the Analysts

Next up – Grading the Analysts. One of the unavoidable truths that investors need to grapple with is there will always ... Read More

 

Anomaly – Overpaying for Growth

How can investors overpay for growth? What risks does it cause? This week we tackle this question to help answer ... Read More

 

Anomaly – Dividend Paying Stocks

Since 1926, dividend paying stocks have outperformed non-dividend paying stocks by about 1.9% per year…with 39% less volatility. That’s impressive! For ... Read More

 

Anomaly – Value vs. Growth

Since 1926, if you were to rank stocks by their price-to-book ratio those with low ratios (value stocks) have outperformed those ... Read More

 

Stock Market Anomalies Overview

Looking back through history, researchers have uncovered dozens of variables that have been associated with outsized equity returns. And for ... Read More

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