2
Sector and market background
What topics are covered in this chapter?
- Why look at the sector first?
- What drives sector profits?
- What is the outlook for demand?
- What is the outlook for prices?
- What is the outlook for costs?
- General economic and stock market factors – how do they affect the sector?
- Summary
- Checklist
Why look at the sector first?
It is worth looking at the sector first as it gives you a quick sense of how difficult or otherwise it is for a company to make money. Historically, if the sector has found it difficult to make money and generate good returns, we must explore the reasons for this. This immediately may save you time as you can eliminate the sector as one where it is difficult to make money or, importantly, where the ...
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