| Sector | Includes things like... |
|---|---|
| Basic Materials | aluminium, steel, gold mining, metals, paper, containers, lumbar |
| Capital Goods | aerospace, engineering, construction, machinery, manufacturing , electrical equipment |
| Communications | communication equipment, mobile phone, broadband |
| Consumer Cyclical | automobiles, building materials, leisure time, retail, restaurants, textiles, homebuilding |
| Consumer Staples * | beverages, cosmetics, foods, medical products, tobacco |
| Energy | gas, oil |
| Financial | banks, insurance, loans, brokerages |
| Health Care | pharmecuticals, private hospitals |
| Technology | computer software, electronics, photography, office equipment |
| Transportation | delivery services, logistics |
| Utilities * | water, electric, gas |
*These sectors are not cyclical as people will always need electricity, water, food etc. However the other sectors are cyclical and will often perform better at different times of the year or at different times of an economical cycle.
Like with the index's it is important you buy shares whose sectors are moving up and sell shares whose sectors are moving down. This is to make sure you aren't trading against the momentum.
Sectors will always out perform other sectors, it is well worth researching the best and worst sectors in the stock market to aid your stock picking decisions. Several websites provide useful tools for you to do this, I recommend using ADVFN, which is free to register.
