Learn About Markets & Sectors
Sectors are a segment of the economy in which businesses share a similar product or service. Breaking down an economy into different sections allows for a more in-depth analysis of the economy as a whole. Any economy can be divided into sectors, such as the economy of a particular city, or the global economy.
One way to invest with the business cycle and diversify an equity portfolio is using sector-based securities and funds. In order to employ this type of strategy, you should know how sectors and industries are comprised.
All Sectors Lessons
Because of their narrow focus, sector funds tend to be more volatile than funds that diversify across many sectors and companies.