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Fisher Investments believes each investing sector has a unique set of attributes. The Industrials sector, for example, is generally capital intensive and economically sensitive. The Energy sector is highly dependent on the supply and demand for oil, while the Technology sector is innovation driven, with a degree of economic cyclicality. So what characterizes the Consumer Staples sector?
Fisher Investments identifies some common characteristics: First, this sector's products have a common end market—consumers. Second, like Joe Consumer, these are products many folks use daily. Finally, frequency of use tends to be consistent for these products, regardless of how the economy is doing.
Note: This isn't to say Consumer Staples is inherently superior to other sectors—it isn't. But Consumer Staples, like each sector, has unique attributes leading both to outperformance and underperformance depending on economic and market conditions. There will be periods when Consumer Staples performs very well relative to the broad market and periods when it lags. Fisher Investments' aim with this book is to give you tools to help better predict when that happens and why.
For more information or to purchase Fisher Investments on Consumer Staples, click here.
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