Part 1 of a 3 Part Series on ‘Cyclicals’
Fundamentals of investing in the Consumer Discretionary Sector
Among the different market types the Consumer Discretionary Sector is closely watched during a recession because its components are the first to turn up in anticipation of a bottom in the economy. That’s why the sector is also known as the Cyclicals. When stocks in the sector start up, then in general technology stocks are not far behind. These two groups are the big leaders at the beginning of a bull run in the stock market. The Consumer Discretionary Sector encompasses those industries that tend to be the most sensitive to economic cycles. Its manufacturing segment includes automotive, household durable goods, textiles & apparel and leisure equipment. The services segment includes hotels, restaurants and other leisure facilities, media production and services, and consumer retailing and services.
Part 2 of a 3 Part Series on ‘Cyclicals’
The Consumer Discretionary Sector—Addressing the Impacts of Investing
Among the different market types the Consumer Discretionary Sector is closely watched because it has always been particularly sensitive to many different weathervane changes. If you want to know what’s going to happen a few months down the road, keep your eye on the Cyclicals. As noted in the first installment of this series, the Consumer Discretionary Sector encompasses both manufacturing and services segments. Its manufacturing segment includes automotive, household durable goods, textiles & apparel and leisure equipment. The services segment includes hotels, restaurants and other leisure facilities, media production and services, and consumer retailing and services.
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