The Top 10 Market Sectors You Should Invest In

Investing is a great way to get ahead in the world. While investing in the short term can yield some great results, true fortunes are built over time. By investing, individuals can reach their true financial freedom. There are many ups and downs in investing, so individuals need to be able to weather the storms in order to make it to the next level of their financial future.

For many, a financial planner can help with the process of building a retirement account or making trades that will add to an individual’s income. Depending on the goals of the investor, different actions must be taken.

Creating a personal investment strategy is something that takes time. For many, the rush of day trading can be very exciting, and so they are willing to lose some money in order to have massive returns. For others, a long steady climb is what works for them. Developing your own personal investment strategy can help you take the proper steps to reach the goals in your portfolio.

Learning what makes a strong investment in the stock market is crucial. If you are just randomly picking stocks with random entry and exit points, you will probably not have the types of results you are looking for. So what makes a good investment? The top sectors, listed in this article, have been chosen due to both their current returns, as well as their long term consistency. By reading this article, you will get a more well-rounded look at the market and its different sectors. You will learn what you are actually investing in, and you will be able to make educated decisions about your financial future.

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10 Consumer Discretionary

Consumer Discretionaries are those things that people really want, but do not absolutely need. This can include things like restaurants, hotels, media, entertainment, and more. This sector of the market is great to invest in during upturn markets, but you have to remember that this sector can also take some of the biggest hits when it comes to downturned market trends. There are some great gains to be made in this market, however, during bullish periods.

9 Consumer Staples

The name pretty much says it all. Consumer staples are the staples of our lives. The food that we eat and the beverages that we drink are fundamentals, and allow us to have a great quality of life. Other products, such as tobacco, household products, and personal products, are also consumer staples.

Consumer staples are a safe bet for investors because they are always things that we need, even when we don't have a ton of money to spend. Investing in consumer staples is a great idea for those who are looking to have solid building blocks in their investment portfolio.

8 Energy

The energy sector is also a great sector to invest in. The energy sector focuses on alternative forms of energy, like wind and solar, as well as coal, natural gas, and petroleum products. Energy products are crucial in the day-to-day life of pretty much everybody, so it is a good idea to invest in these industries.


The energy market is regularly yielding good results, so this is a great way to insure some steady growth in your portfolio. Even in downturned markets, energy products are consumed regularly and can help to hedge against your losses.

7 Financials

The financial sector of the market is a great one to invest in during boom times. The financial sector covers many different services, such as small business lending, mortgages, banking institutions, investment banking, brokerage firms, and more. These services tend to do well in a prime economy.

It is a good idea to invest in many of these financial services because the upward potential of gains in this sector are very large. These gains can really give you a foot forward for your portfolio. It is easy to make great returns, but be sure to watch these stocks closely as they can drop quickly in a downturn.

6 Health Care

The healthcare sector of the market is broken into two main groups. The two main groups consist of companies that create the healthcare equipment and materials used in the hospitals, homes, and doctors’ offices around the world. The other group is those companies that actually supply the health care to patients.

These industries are usually always on the rise, as many individuals are need of these products and services on a regular basis. The healthcare sector of the market is a great place to put your money - you know that this money will go towards a good cause.

5 Industrials

The industrial market is made up of industrial and engineering companies. Large bridges, the military, advanced airplanes, new automobiles, and new inventions usually get their start in companies that are a part of the industrial market.

Additionally, factories that produce all of our goods are usually in the industrial market. When industry is booming, this sector is a great idea for an investment.

4 Information Technology

Information Technology has been booming of late. Companies like Cisco, Apple, Microsoft, and more have been pushing forward with a bunch of new improvements that keep us more connected than ever.

Companies like Twitter and Facebook have influenced this sector of the market as well. Great returns have been made by individuals who have invested in this market due to the massive value that is given to the world by information technology. Staying connected with each other is easier than ever thanks to IT, and that’s only going to become more important over time.

3 Materials

The industrials sector of the market is a huge player in the economy. Pretty much everything that we take part in on a daily basis comes back down to the materials sector of the market. We need the supplies from the materials markets in order to make roads, homes, business buildings, airplanes, cars, and so much more. The engineering and construction that takes place in the industrial market is what keeps the world going, and those areas need material to be able to do anything.

This is something that makes the materials market a great bet for investments. Investing in the materials sector of the market not only insures a great return in your portfolio, but it insures that your money is going towards helping build this world into a better place.

2 Telecom Services

The Telecom Sector of the market is a very integral part of the market place. Nowadays, it is quite rare to see a person who doesn’t own a cellphone. The state of the telecom sector, however, is still being decided. Cell phone communication is still relatively new, and the big players are still being decided.


This can come into play in the telecom market. Deciding when to invest in the Telecom Sector is probably the best thing to do at this point. Study reports, and look at new companies coming onto the scene, and you’ll get a more appropriate perspective about when and how to invest in the telecom sector.

1 Utilities

Utilities are yet another essential in the modern world. Everyone has to pay their bills at the end of the month, and this is how the utilities sector of the market continues to grow. This sector of the market includes power companies, water companies, waste management companies, and more.

It’s a good investment for those who are looking to keep making small, steady returns. There usually aren't huge jumps to be had in this sector, but there usually aren't huge losses to be had either.

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