US Sectors

The course of an economic cycle, characterised by its growth and contraction phases, can also be read through the performance on financial markets from the sectors that constitute a country’s economy. Thus, there will be sectors that perform better in the initial stages of growth or others that will perform better when inflation bytes or a recession is just around the corner. The reading is twofold: the phases of the economic cycle suggest which sectors to focus on; at the same time sectors’ performances provides us with information on the health of a country’s economy. Analysis of sectors’ trends is therefore useful to understand investors expectations on a country’s economy. Here we present an analysis of the US sectors that compose the s&p500 index.