How to select the industry to invest in ??

Question

Hi,

I am new to equity market and trying to understand the flow of markets.My first question is how one can chooses a particular industry(Infra,IT,Healthcare,Aluminium.........etc) to invest??On what criteria we need to opt for??Can you also list down some of the fast growing as well as consistent industries?

Can you describe some sites where I can get Company info like ROE,D/E ratio.....etc??

Thanks in Advance.

Answer 1

When there is little new money coming into the market, there is usually rotation: $$ flowing out of an overvalued group into an undervalued one.

A new group typically emerges when a leading company starts to report improving fundamentals. Identifying leading companies already puts you ahead of the crowd as they are the ones leading emerging sectors.

Answer 2

yahoo finance site is free.

***
what industry to invest in depends on your lifetime financial plan. [As well as the current state of the economy and markets.]

you probably don't have such a plan, so you need to learn first and then build one. fortunately, your public library will help you get started and it is free.

no lifetime financial plan is more likely to be implemented than the one you build yourself. Plans proposed by any financial planner will always include either a fee or a commission for the planner.

my advice is to first build up your investable capital until it is equal to your annual income. While this is being done, learn.

Then you'll be able to buy or build a plan that makes sense for you. AND, you'll know enough to avoid the most obvious pitfalls.

Answer 3

I think you should choose one that will be around forever. It may be very boring but it should be able to make you money. I know that China's economy is booming very quickly right now.

Sharebuilder lists all the ROE, etc. for every stock on their website.

Answer 4

read read read

buy or subscribe to Investor's Business Daily the bible of newspapers NOT the Wall St journal

buy the William J O'Neil book... how to make money in the stock market

Answer 5

Well, I would invest in an index fund. That way, you are fully invested in all industries and are not exposed to any one alone at one time.

Answer 6

dude you need to have knowledge about the world and how such stuff affects it. All I can say is read a lot then you'll know it.

Answer 7

You can try this site to gauge how well the industry is doing right now at http://www.smartmoney.com/marketmap/index.cfm?showWeekStats=true

For your second question, you can start doing your research at:

http://finance.google.com/finance
and http://finance.yahoo.com/