Sectors
Standard and
Poor’s is a financial services company that rates corporate bonds, municipal
bonds, and stocks according to their risk. This company also tracks the S&P
indexes and publishes many different investment reports. Standard and Poor’s
categorizes stocks into 10 sectors. 8 of these 10 sectors are cyclical stocks
while 2 are non cyclical. The two non cyclical are Consumer Staples and
Utilities. Non cyclical represent those things for consumers that are always in
need, whether or not the economy is doing well or not. Cyclical on the other
hand represent those items that consumers buy when their confidence in the
economy is high.
Here is how S&P
classifies stocks by sector:
