Basic Materials Consumer Goods

Consumer Services Financials

Health Care Industrials Oil & Gas

Technology Telecommunications

Utilities

Involved with the discovery, development and processing of raw materials

Includes the mining and refining of metals, chemical producers and forestry products.

Supplies materials for construction, it depends on a strong economy.

Sensitive to supply and demand fluctuations because the price of raw materials, such as gold or other metals, is largely demand driven.

ConocoPhillips Bway Holding Company Packaging Corporation of America Goodyear Tire & Rubber Company Macquarie Infrastructure Company Trust World Fuel Services Sealed Air Crown Cork & Seal Company Amerityre

http://news.morningstar.com/stockReturns/SectorTop100Stocks.html?sector=Consumer_Goods

highly related to the state of the economy.

Represent goods and services that are not considered necessities, but luxurious purchases.

During contractions or recessions, people have less disposable income to spend on consumer cyclicals.

When the economy is expanding or booming, the sales of these goods rise as retail and leisure spending increase.

http://news.morningstar.com/stockReturns/SectorTop100Stocks.html?sector=Consumer_Services

perform best in low interest rate environments.

generates revenue from mortgages and loans, which gain value as interest rates drop.

when the business cycle is in an upswing, the financial sector benefits from additional investments. 

Improved economic conditions usually lead to more capital projects and increased personal investing.

New projects require financing, which usually leads to a larger number of loans.

Consumer Credit Insurance Investment Banks Major & International Banks Online Financial Services Regional & Commercial Banks Savings & Loan

includes hospital management firms, health maintenance organizations (HMOs), biotechnology and a variety of medical products.

defensive because the products and services are essential.

Even during economic downturns, people will still require medical aid and medicine to overcome illness.

Having a consistent demand for goods and services makes this sector less sensitive to business cycle fluctuations.

Express Scripts Cardinal Health Universal Health Community Health Magellan Aetna Amerigroup

Waste Management Lumber/ Wood Protection Aerospace Defense Farm and Construction Machinery Cement Metal Manufacturing Textile Industry

Can prosper during war, farming seasons, construction increases when economy is booming

Ceradyne Deere Co. Waste Management Innovative Designs Dixie Group Boeing Raytheon Caterpillar

producing or supplying energy.

involved in the exploration and development of oil or gas reserves, oil and gas drilling, or integrated power firms.

driven by the supply and demand for worldwide energy.

Energy producers will do very well during times of high oil and gas prices, but will earn less when the value of energy drops.

research, development and/or distribution of technologically based goods and services

contains businesses revolving around the manufacturing of electronics, creation of software, computers or products and services relating to information technology

personal computers, stereos and televisions are continually improved and upgraded, offering the latest technology to all users.

Businesses receive information and services from software and database systems, which allow the companies to make strategic business decisions.

In 2006, estimates placed the telecommunication industry's revenue at $1.2 trillion or just under 3% of the gross world product

companies have used telecommunication to help build global empires

telecommunication has increased the public's ability to access to music and film

Social networks

AT & T Nokia

Motorola Verizon Sprint

Contains companies such as electric, gas and water firms and integrated providers.

Utilities require significant infrastructure, these firms often carry large amounts of debt.

With a high debt load, utilities companies become sensitive to changes in the interest rate.

As interest rates rise or drop, the debt payments will increase or decrease.

The utilities sector performs best when interest rates are falling or remain low.

John Deere – DE – Telecommunications Verizon – VZ – Technology Conoco Phillips - COP – Basic Materials Ceradyne – CRDN – Industrial Goods Deere Co. – DE – Industrial Goods M&T Bank – MTB – Financials IBM – Technology