The Economy and Sectors
Learn to think about sectors in relation to what is happening in both the national and global economies.
For example basic materials include those products used to make other goods - lumber, for instance. When the housing market was booming in the early to mid 2000's, the stock of lumber companies rose as demand increased. The end of the housing boom caused devastation for homebuilders and a reduced the demand for lumber, as well as lowering lumber company stock values.