How to diversify your investments?
As a stock market investor, you’ve probably heard about diversification which allows you to lower your risk. One way to diversify is through investing in companies that are in different market sectors. This video is all about that.
We’ll review the 11 different Market Sectors that exist (namely, Communication Services, Consumer Discretionary, Consumer Staples, Energy, Financials, Healthcare, Industrial, Information Technology, Materials, Real Estate, and Utilities). We’ll analyze their 1-Year performance, assess their fundamentals by looking at dividend yield (which would be of interest to dividend investors), as well as return on investment (which would be of interest for growth investors). We’ll also provide examples of companies for each stock market sector so you can better relate to them. Let’s get into it! Here’s an overview of the 11 stock market sectors.
As you notice, the size of Stock Market Sectors vary with Real Estate having the lowest market capitalization of just over 1 trillion dollars, and Information Technology the largest market cap of over 9.18 trillion dollars. The best 1-year stock market performance belongs to the Information Technology Sector with an impressive 29.63% growth which knocks the performance of the S&P 500 out of the park. The worst performing one of the stock market sectors is Energy with a -36.94% performance. All right, let’s get into reviewing each of the market sectors in-depth by reviewing their fundamentals and providing examples of companies in all of the 11 Stock Market Sectors, helping you to diversify your investments!
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🔗 Which stock market sector are you most excited about this year?