Different Sector Stocks

Stocks have a tendency to move in synch with other stocks in the same category. For instance, a bad report on a specific segment e.g. future of desktop pc's might hammer all related stocks that deal with that category. In order to avoid such price fluctuations, investors often tend to have a combination of different industry stocks. As an example, you might choose some technology stocks coupled with some financial, oil & gas, consumer goods or healthcare stocks. Some sectors might withstand or even flourish in market corrections or downturns, so it's always a good idea to diversify.




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