Many of you had questions regarding the recent blogs discussing which sectors have performed better or worse than others and why. Materials seem to be on your mind so let’s take a closer look. . .
Materials – A Closer Look
The materials sector is comprised of companies engaged in a wide range of commodity-related manufacturing such as:
Glass, Paper and Forest Products
Metals and Mining
It hasn’t done well lately.
This is due to slowing industrial growth (both perceived and real). Globally, there has been a bit of a slowdown but we are still growing from the 2008-2009 levels. China weighs on sentiment here and they have slowed infrastructure spending recently.
People buy firms in the sector because these materials are so widely used.
People sell them because they worry about demand dropping.
Funny though, products made with many of these materials top the theft charts!
Until next week,
Susan R. Linkous
Securities offered through LPL Financial
Member FINRA and SIPC
I spend lots of time discussing sectors. I tend to believe that investors are better served by understanding their cycles than trying to time the market or pick all the right individual stocks.
With that said, investing in a specific sector can be more volatile than investing across all. Please view this as educational material only and call me to discuss if it’s appropriate for you.
Quote of the Week
“Experience shows that success is due less to ability than to zeal. The winner is he who gives himself to his work, body and soul.”
~Sir Thomas Fowell Buxton