Sector

Sector is a term used to describe a group of stocks, bonds, or other investments that share similar characteristics. Sectors are typically divided into three categories: cyclical, defensive, and sensitive. Cyclical sectors are those that are affected by the business cycle, such as energy, materials, and consumer discretionary. Defensive sectors are those that are less affected by the business cycle, such as utilities, healthcare, and consumer staples. Sensitive sectors are those that are sensitive to economic and political events, such as financials, technology, and industrials.

History of the Term

The term “sector” was first used in the early 1900s to describe the different industries that make up the stock market. It was used to help investors identify which stocks were in the same industry and how they were performing relative to each other. Over time, the term has evolved to include other types of investments, such as bonds and commodities, and to describe the different types of sectors that make up the market.

Comparison Table

Summary

Sector is a term used to describe a group of stocks, bonds, or other investments that share similar characteristics. Sectors are typically divided into three categories: cyclical, defensive, and sensitive. The term “sector” was first used in the early 1900s to help investors identify which stocks were in the same industry and how they were performing relative to each other. For more information about this term, you can visit websites such as Investopedia, The Balance, and Yahoo Finance.

See Also

• Industry
• Stock Market
• Bond Market
• Commodities
• Business Cycle
• Economic Events
• Investment Strategies
• Portfolio Management
• Risk Management
• Asset Allocation

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