What sectors are stocks divided into？ What are the importance and influence of these sectors in market analysis？

Classification of stock plate and its importance and influence in market analysis

In the stock market, stocks are usually divided into many different sectors. The division of these sectors is based on a variety of factors, including the company’s industry attributes, scale and geographical location. Common stock sectors mainly include the following categories:

1. Industry sector: this is divided according to the main businesses the company is engaged in, such as financial sector (including banking, insurance, securities, etc.), consumer sector (covering food and beverage, household appliances, automobiles, etc.), science and technology sector (including electronics, computers, communications, etc.), medicine sector, energy sector (oil, natural gas, coal, etc.) and industrial sector (machinery manufacturing, aerospace)

2. Concept plate: This kind of plate is formed based on some popular concepts or themes, such as new energy concept plate (including solar energy, wind energy, new energy vehicles, etc.), 5G concept plate, military industry concept plate, blockchain concept plate, etc.

3. Geographical plate: according to the geographical location of the company, such as Yangtze River Delta plate, Pearl River Delta plate, Beijing-Tianjin-Hebei plate, etc.

4. Scale plate: usually divided into large-cap stock plate, medium-cap stock plate and small-cap stock plate, mainly based on the market value of the company.

These plates are of great significance and influence in market analysis:

First of all, the performance of different plates is different. At different stages of the economic cycle, some sectors will perform well, while others will be relatively weak. For example, in the period of economic recovery, cyclical industries such as energy and industry tend to rise first; In the economic recession, defensive sectors such as consumption and medicine are usually more resilient.

Secondly, the plate rotation phenomenon is obvious. Funds flow between different sectors, pushing each sector to rise or fall in turn. By grasping the law of plate rotation, investors can adjust their investment portfolio in time and obtain better returns.

Furthermore, industry policies and macroeconomic environment have different influences on different sectors. For example, the government has introduced policies to encourage the development of new energy, and the new energy sector may be sought after by funds; When the macroeconomic growth slows down, the cyclical sector may be hit hard.

In addition, the correlation between plates is also worthy of attention. There is a positive correlation between some plates, that is, when one plate rises, the other plate often rises; However, some sectors are negatively correlated, with one rising and the other possibly falling.

Here is a simple table to compare the performance of different sectors in different stages of the economic cycle:

plate Economic recovery period Economic boom period Economic recession period Economic depression period Consumer plate Do well. well done Relative resilience be relatively stable Science and technology plate Do well. well done It fluctuates greatly. Weaker Financial plate Get better gradually well done Weaker Weaker Energy plate Start to recover well done Weaker Weaker

In a word, it is of great significance for investors to understand the plate classification of stocks and their importance and influence in market analysis, so as to formulate reasonable investment strategies and optimize their portfolios.

(Editor in charge: difference extension)

[Disclaimer] This article only represents the author’s own views and has nothing to do with Hexun. Hexun.com is neutral about the statements and opinions in this article, and does not provide any express or implied guarantee for the accuracy, reliability or completeness of the contents. Readers are requested for reference only, and please take full responsibility. Email: news_center@staff.hexun.com.