Market Sector

Businesses are grouped in a market sector, which denotes that they all provide a similar good or service. Grouping businesses together allows investors an easier opportunity to research and investigate each company amongst its peers. An investor can then compare earnings ratios, price-to-book ratios, and other metrics all within one defined sector of the economy. It’s difficult to compare businesses in separate industries, as they would have unique growth prospects. A mature industry such as that of railroad companies can’t expand at the same rate as Internet companies and therefore the fundamental metrics are not the same and can’t be compared at face value.


This market is definitely looking tired after such a strong run since mid-October. The performance of transportation stocks has been noticeable this year. The Dow Jones Transportation Average has actually outperformed the NASDAQ Composite year-to-date. In my mind, when there’s…

When we looked at Biogen Idec Inc. (BIIB) in late April, the biotechnology company was trading around $218.00 a share. Now, it’s trading between $230.00 and $240.00 or so and is still a big momentum bet. The company recently raised…

In these pages, I recently discussed the amazing returns in the benchmark Nikkei 225 index in Japan and how the country is following America’s example, printing money to fuel the economy. The fact is that Japan is finally beginning to…

Research In Motion Limited (NASDAQ/RIMM; TSX/RIM) appears to be rising from the ashes, as investors dive back into the stock of the once-fabled maker of the “BlackBerry.” For Research In Motion (RIM), it has been quite the journey after the…

One of the most often talked about parts of the economy is the real estate market sector. Because real estate is such a large and important part of the economy, naturally, many eyes are focused on whether or not this…

Historically, when the economy is recovering from a recession and heading into a cyclical growth phase, the market sectors that traditionally do well are the technology and semiconductor industries. Investors buy the stocks in these areas because earnings growth for…

Technology stocks move at an extremely fast pace with the continued development and innovation of software and hardware. When looking at the market sector for software, a few large names pop up that have a large percentage of market share…

The recent testimony by Jamie Dimon, CEO of JPMorgan Chase & Co. (NYSE/JPM), in front of the Senate’s panel proves two things: 1) Dimon is quite cool under pressure; and 2) lawmakers know very little about the financial market sector…

With technology stocks in the hot mobile sector active in developing new technologies, some companies like Research In Motion Limited (NASDAQ/RIMM) are being left behind. With market share for Research In Motion (RIM) in the first quarter 2012 in the…

Recently, bank stocks have taken big hits following news of the trading debacle involving JPMorgan Chase & Co. (NYSE/JPM), causing the firm over $2.0 billion in losses. This has caused a market sector selloff across the entire investment banking space.…

One of the basic problems for investors who aren’t successful over the long term is that they are trying to catch a falling knife. This means trying to pick the bottom of a market sector decline, hoping that future corporate…

Stock picking in a market with very little tailwind makes life much more difficult compared to a bull market. This is obvious. But in any market, there are opportunities in differing market sectors. There’s always the opportunity for short-selling and…

It’s funny how investor sentiment can change on a dime. An expectation gets created for a solution to a problem, the action occurs, then it’s okay for investors to buy stocks. Institutional investors—or traders more particularly—always do this. It’s the…

Listen up, folks; stock markets have had a great run. There may be more upside moves ahead of us, as the economy continues to improve, but this is not a time to be aggressive given the turmoil in the Middle…

The first week of 2011 was positive; this could signal additional gains for January and the rest of the year. The near-term technical picture is bullish on above-average Relative Strength, but you should watch the overbought technical condition. Sentiment continues…

— "Ahead of the Street" Column, by Mitchell Clark, B. Comm. Big, brand-name companies always get the early headlines during earnings season, because they have the big accounting departments to get their books done early. Right now, if you want…