CONGRATS you now know what the stock market is as a whole, and I bet you still have a lot of gaps (just like I did) in your knowledge, so let's stop looking at the market from a bird's eye view and move down to Wall Street for a more in depth view. As you continue down the tabs we will get more in depth to everything mentioned before.

Because of how many companies are listed on the market (about 55,000) investors have broken them all up into 11 sectors.

3.  Financials - firms and institutions that provide financial services to both corporate and individual customers. This sector consists of banks, investment funds, and insurance companies, among others. 

4.  Real Estate - Companies invested in residential, industrial, and retail real estate. Accordingly, the main source of revenue for these companies comes from rent income and real estate capital appreciation. 

5.  Energy - Consists of oil and gas exploration and production companies, as well as integrated power firms, refineries, and other operations. In general, these companies generate revenue that’s tied to the price of crude oil, natural gas, and other commodities. 

6.  Materials - Consists of mining, refining, chemical, forestry, and related companies that are focused on discovering and developing raw materials. 

7.  Consumer Discretionary - Consumer discretionary is a term to describe goods and services that are deemed non-essential by consumers. To list, this sector consists of retailers, apparel companies, media companies, consumer durables, and consumer service providers. 

8.  Industrials - Consists of construction, machinery, fabrication, manufacturing, defense, and aerospace companies. 

9.  Utilities - Consists of electric, gas, and water companies as well as integrated providers. 

10.  Consumer Staples - Consists of food and beverage companies as well as companies that create products consumers deemed essential for everyday use. 

11.  Telecommunication - Features cable companies, internet service providers, wireless providers, satellite companies, and many more.

       The 11 sectors are important because like we mentioned earlier, news and company earnings are very important for stock price and each sector responds to the same news differently. Take the very high interest rates of about 5.25% as of this writing for example. Real estate companies have been tanking down lately because the price of interest on Morgage rates are so high. This means people do not want to refinance a Morgage and move to a new house and take on a new, much higher interest rate. Because people are not moving and building houses at such a high-rate, real estate company profits are down. 

ON THE FLIP SIDE.... Financial companies, such as banks, might have higher profits because of higher interest rates on loans with variable interest rates (change with the state of the economy). 

There are always 3 sides to every piece of news, either it moves a stock up, down, or doesn't affect it at all. The job of an investor is to find companies with strong principles that can withstand this crazy world we live in.

       Since you know what the 11 sectors are now it is time to teach you what makes each of these sectors tick, what makes them move, and what is important when looking at them as a whole. We will go more in depth into individual companies and metrics later but for now let's stick with a more overhead view. This information is more suited to the investing tab, but I figured you came here to learn to invest so let's put some exciting stuff in now. Check out this quick video below for an overview of this tab and the info on what makes the sectors move.

Click the video ⬇️