The S&P sectors, or Global Industry Classification Standard (GICS), organize companies based on their primary business activities.
Investors can use the sectors to isolate stocks of specific interest or to build a diversified portfolio.
The order of the 11 sectors based on size is as follows: Information Technology, Health Care, Financials, Consumer Discretionary, Communication Services, Industrials, Consumer Staples, Energy, Utilities, Real Estate, and Materials. (corporate finance institute)
Now let's compare the performance of these sectors in different timeframes:
A: 1 year: 8 out of 11 sectors had negative performance!
B: YTD (Year today): 9 out of 11 sectors had negative performance!
C: 3 months: 7 out of 11 sectors had negative performance!
D:1 month: 0 out of 11 sectors had negative performance!
Education:
Trend and Timeframe:
1- Talking about the trend without mentioning the timeframe is nonsense!
2- Talking about the target price without mentioning the timeframe is also nonsense!
3- You should pick your investment/trading strategies based on the timeframe you expect to realize the gain or loss.
Observation:
While the Market has had a negative performance in the 3-12 months timeframe, it has had positive performance in the past month!
Which means:
Most investors have had a positive return in the past month, but they lost money in the past 3 to 12 months!
Learning from past market movements:
In 2001 and 2008 market experienced many 10-26% rebounds and then made new lows!
Since 2022 we had 4 sharp upward moves:
Most important question:
Is the bearish market finished and this is a beginning of a new bullish market?
To answer this question first we could be able to say FED has finished its job with inflation, which I think is not done yet!
Best,
Investors can use the sectors to isolate stocks of specific interest or to build a diversified portfolio.
The order of the 11 sectors based on size is as follows: Information Technology, Health Care, Financials, Consumer Discretionary, Communication Services, Industrials, Consumer Staples, Energy, Utilities, Real Estate, and Materials. (corporate finance institute)
Now let's compare the performance of these sectors in different timeframes:
A: 1 year: 8 out of 11 sectors had negative performance!
B: YTD (Year today): 9 out of 11 sectors had negative performance!
C: 3 months: 7 out of 11 sectors had negative performance!
D:1 month: 0 out of 11 sectors had negative performance!
Education:
Trend and Timeframe:
1- Talking about the trend without mentioning the timeframe is nonsense!
2- Talking about the target price without mentioning the timeframe is also nonsense!
3- You should pick your investment/trading strategies based on the timeframe you expect to realize the gain or loss.
Observation:
While the Market has had a negative performance in the 3-12 months timeframe, it has had positive performance in the past month!
Which means:
Most investors have had a positive return in the past month, but they lost money in the past 3 to 12 months!
Learning from past market movements:
In 2001 and 2008 market experienced many 10-26% rebounds and then made new lows!
Since 2022 we had 4 sharp upward moves:
Most important question:
Is the bearish market finished and this is a beginning of a new bullish market?
To answer this question first we could be able to say FED has finished its job with inflation, which I think is not done yet!
Best,