Transportation Sector

Categories: Index Funds

See: Dow Theory.

Trucks. Trains. Boats. Someday, that I Dream of Jeanie blinking thing. Maybe the Star Trek thing with body molecules moving all over. The whole sector, moving people around, seems to move as a singular-ish group. When Carnival (the cruise ship company) is up, so is Southwest, United, and Greyhound.

Even though, long-term, the sector’s investment results have been meh relative to other groups, it is followed closely by Wall Street and by economists because of its role as a kind of canary in the mineshaft of, well, everything. When the economy or business cycle starts to roll over, this is one of the very first early movers to sink, with volumes and pricing declining fast. So we feed this canary…and watch it closely. With plenty of newspaper underneath it.

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Finance: What is a Sector Fund?5 Views

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Finance allah shmoop What is a sect or fund All

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right Well star wars and star trek captains are all

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these barking about setting coordinates for sector for stat or

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whatever they say That means urgent in the future right

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We'll hear space here's sector four and it's Ah well

00:19

kind of a slice of space Ok now come back

00:23

to earth gently And as it applies to mutual funds

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it's kind of the same notion that is A sector

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comprises a particular discipline of investing Like think of it

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like a slice of the s and p five hundred

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Like one sector of the economy is banking Another is

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tech Another is telecommunications And then there's oil and transport

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And consumer durables in each of these areas has hundreds

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of ways in which investors can invest in that particular

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sector That is there are index funds that invest in

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it Yeah Mutual funds hedge funds private equity funds Even

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venture capital funds Each of whom has a particular discipline

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or focus on lee in one sector More less so

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why would you want to sector fund Well if you

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believe that oil was about tohave an explosion in demand

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the good kind of explosion Then you'd want to beam

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or exposed to it financially at least to its upside

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Then say you would technology which you feel has gotten

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too expensive in the markets And its best days are

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behind it It's A little like putting several of your

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eggs into one particular basket because you really like that 00:01:30.519 --> [endTime] basket

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