Financial Services and Wall Street Journal
What kinds of industries tend to be better performers in the medium to long term? Why? What kinds of industries tend to do poorly in the medium to long term? Why?
In determining the industries that performs better or poorly, it is important to note that better performance indicates better profitability and poor performance indicates loss or minimal profitability. Since we are considering medium and long-term performance we will be considering performance data ranging anywhere between three to five years (3-5 yrs.).
Reviewing the industry performance list published by Morningstar and the Industry Research published by Market Watch of the Wall Street Journal, the performance data indicate that the following industries are better or poor performers in the medium and long-term:
• The following industries tend to be better performers in the medium and long-term:
(1) Oil & Gas Sector: Pipeline industry.
(2) The Basic materials sector: Specialty chemical.
(3) Industrials Sector: Railroads, and Industrial suppliers.
(4) Consumer Goods Sector: beverages, Tobacco, Recreational products, Clothing and Accessories.
(5) Health Care Sector: Biotechnology.
(6) Consumer Services Sector: Travel & Tourism, Restaurant & bars, Hotels and Gambling.
(7) Financial Sector: Consumer finance, Residential REIT and Retail REIT.
(8) Technology Sector: Computer services, and Computer Hardware and Equipment.
• The following industries tend to be poor performers in the medium and long-term:
(1) The Basic materials sector: Basic resources, Aluminum, Coal, Steel, and Mining.
(2) Industrials Sector: Electronic office equipment, and Heavy construction.
(3) Consumer Goods Sector: Tires, Brewers and Consumer electronics.
(4) Telecommunication Sector: Mobile Telecommunication
(5) Financial Sector: Mortgage Finance, Investment services, bank, Full line insurance, Special financing, and asset management services.
The information presented in both the Morningstar
In determining the industries that performs better or poorly, it is important to note that better performance indicates better profitability and poor performance indicates loss or minimal profitability. Since we are considering medium and long-term performance we will be considering performance data ranging anywhere between three to five years (3-5 yrs.).
Reviewing the industry performance list published by Morningstar and the Industry Research published by Market Watch of the Wall Street Journal, the performance data indicate that the following industries are better or poor performers in the medium and long-term:
• The following industries tend to be better performers in the medium and long-term:
(1) Oil & Gas Sector: Pipeline industry.
(2) The Basic materials sector: Specialty chemical.
(3) Industrials Sector: Railroads, and Industrial suppliers.
(4) Consumer Goods Sector: beverages, Tobacco, Recreational products, Clothing and Accessories.
(5) Health Care Sector: Biotechnology.
(6) Consumer Services Sector: Travel & Tourism, Restaurant & bars, Hotels and Gambling.
(7) Financial Sector: Consumer finance, Residential REIT and Retail REIT.
(8) Technology Sector: Computer services, and Computer Hardware and Equipment.
• The following industries tend to be poor performers in the medium and long-term:
(1) The Basic materials sector: Basic resources, Aluminum, Coal, Steel, and Mining.
(2) Industrials Sector: Electronic office equipment, and Heavy construction.
(3) Consumer Goods Sector: Tires, Brewers and Consumer electronics.
(4) Telecommunication Sector: Mobile Telecommunication
(5) Financial Sector: Mortgage Finance, Investment services, bank, Full line insurance, Special financing, and asset management services.
The information presented in both the Morningstar
References: Financial Time (July 6, 2012). Industry in Oil and Gas sector: Pipeline. Retrieved from http://markets.ft.com/Research/Markets/Sectors-And-Industries/Oil-and-Gas/Pipelines GAIN Grant, R. M. (2011). Contemporary strategy analysis (7th ed). John Wiley and Sons Ltd. West Sussex United Kingdom. Neate, R. (2012). JP Morgan crisis: Obama backs tougher Wall Street regulation. Retrieved from http://www.guardian.co.uk/business/2012/may/15/jp-morgan-obama-backs-wall-st-reform