What affects different sectors in investing?

Question

You have your basic sectors (theres probably more i know)

-Basic Materials

-Conglomerates

-Consumer Goods

-Financial

-Healthcare

-Industrial Goods

-Services

-Technology

-Utilities

I'm wondering, as a newbie to investing, what affects each sector?

ie.....I know experienced investors can read the news and know 'event a' is going to cause a certain sector to rise/fall in value. (I once had someone try to explain when 'this happens' the price 'that' will rise or vice versa.)

I would really love to be able to study up and figure out how theyre affected but I don't even know the basics of what affects what.

Can anyone help?

Answer 1

Oil goes up...Transports get hurt due to fuel cost.

Oil goes up....Refiners get hurt due to cost

Oil goes up....Tire companies get hammered

Unstable market and inflationary concerns...People buy Gold and precious metals for stability

Consumer spending goes down...Retailers get hurt

Governmental shift in Military spending....Aerospace and Defense gets crushed due to losing contracts.

Interest rates go up...Bonds go down....

Lots more... Read up and Good luck!

Answer 2

Don't try to figuer out what moves each sector, you'll just drive yourself nuts. Study what has your most interist. Don't watch the local news, watch CNBC and read Investing for Dummies.There's a lot of homework to be done before you start to invest your money. Right now the stock market is for sale. And will be for some time. Study, read and watch the market. Good luck and have fun.