The Savvy Investor Stocks and Sectors outlook section consists of the latest articles, white papers, thought leadership and commentary on equities at an individual company level as well an industry and sector level. Commentary and analysis are featured from publishers ranging from asset managers to investment consultants and respected researchers in academia.
Stock markets play a key role in the allocation of capital globally. In exchange for investment capital to finance future growth, companies sell shares in their businesses to investors. The investors, in turn, become shareholders in the business which is known as equity ownership. This is where the term “equity market” is derived and is commonly interchangeable with the term “stock market”. It is estimated that there are around 630,000 firms listed across global stock markets today with the US market, at circa $30 trillion, being the largest stock market by value.
The type of companies listed on global exchanges varies greatly covering all areas of the modern world economy from primary industry, such as mining and oil production, to the quaternary sector such as biotechnology and e-commerce. To assist market participants, individual stocks are classified by sectors and industry groups, which the Financial Times lists as follows:
- Basic materials – mining, chemicals, industrial metals, forestry & paper
- Consumer goods – beverages, tobacco, automotive, food producers, household goods, leisure goods
- Consumer services – general retail, media, travel, leisure, food & drug retail
- Industrials – engineering, transport, construction, aerospace & defence, electrical
- Financials - REITs, real estate, banking, insurance, financial services
- Health Care – equipment, services, biotechnology, pharmaceuticals
- Oil & Gas – producers, distributors equipment manufacturers
- Telecommunications – fixed line and mobile networks
- Technology – software, hardware, computer services
- Utilities – gas, electricity, water
In recent years, investors have witnessed several changes taking place in the investment landscape, which have influenced the way companies do business — notable examples being twentieth century global population growth and the creation of the internet.
Trends influencing investor decision-making today can range from the technological changes affecting the pharmaceutical sector, such as the investment in DNA based medicine, to the political changes that have led to the sale and marketing of cannabis. Other trends prompting change are cultural, such as the move toward plant-based protein consumption or the pursuit of electric transport technologies for individuals and freight.
As described above, the equity markets’ primary function is to channel investor funds to new and developing companies. Thus, our institutional readers will find articles on topics such as IPOs (initial public offerings), together with the latest mergers and acquisitions (M&A) as well as views on the current level of stock buybacks corporate dividend policies. In addition, Savvy Investor includes comment and analysis on company profitability with reference to earnings per share (EPS), and monitoring profit for companies, sectors or the market in general.
As well as covering equities and their sectors in the form of white papers, in-depth articles on the following investment styles can also be found in the Savvy Investor Stocks and Sectors outlook section:
- Cyclical versus defensive
- Growth versus value
- Income or yield
- Active versus passive
- Small cap versus large cap
- Factor investing
Recent popular Stocks and Sectors research pieces include: