The Global Industry Classification Standard enables all market participants to classify stocks by standardised industry definitions. GICS is a standardised classification system for equities made up of a hierarchy of 10 sectors, 24 industry groups, 67 industries and 147 sub-industries. Level 1: the sector Level 2: the industry group Level 3: the industry Level 4:…
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It is an observable fact that as an economy moves forward, different sectors of the economy tend to dominate and perform better than others. Even within these sectors different industries or industry groups can perform better than others. The performance of these sectors and industries can be a factor of the stage of the business…
Identifying and investing in the dominant sectors before they make a significant move is the key to out-performance. What is relative performance? Relative performance is the measurement of the performance of a sector and or industry against a suitable benchmark such as the All Ordinaries Index. By comparing the returns of a portfolio against a…
Modern Portfolio Theory Modern Portfolio Theory or “MPT”, is a theory of finance that attempts to reduce risk for a given level of expected return by carefully choosing the proportions of various assets and spreading these choices throughout the market. In plain English “don’t put all your eggs in one basket”. You can achieve a…
