There is historic evidence that certain companies in specific sectors show relative outperformance at different times in the business cycle. By understanding how certain companies and sectors react to the business cycle, you may be able to position your portfolio to outperform the rest of the market.
Recognizing the relationship between company size, return potential, and risk is essential when selecting investments for your portfolio.
In this lesson you'll learn how the business cycle can be a critical determinant of equity sector performance over the intermediate term.
Both mutual funds and exchange-traded funds offer potential tools for obtaining concentrated exposure to any particular investment sector. Whichever product type you may favor, you should be sure that the fund you select is designed to track the sector as your strategy defines it.
This lesson will show you where to find data provided by U.S. government agencies and departments that may be useful when conducting sector analysis.
Watch this video to learn how to navigate Fidelity’s comprehensive sectors and industries research using a top down approach from markets to sectors to industries and leverage the integrated expert analysis and commentary to help find investment opportunities.
An introduction to sector investing
- Article The business cycle and its investing implications
- Article Why market cap matters
- Article An introduction to sector rotation strategies
- Article Sector investing with mutual funds and ETFs
- Article Industry statistics to consider
- Video Researching sectors & industries on Fidelity.com
Sectors and Industries at Fidelity
Fidelity.com offers comprehensive, timely data, news and expert insights on current market activity in U.S. sectors and industries that can help with investment decisions.
Sector funds offer targeted exposure to different segments of the economy, helping you achieve a variety of strategic and tactical investment goals.