Generating a Stock Idea - Sectoral Trends
This is sector specific. One needs to track sectors to identify emerging trends and companies within the sector that can benefit from it. For example the non alcoholic beverages market is a very traditional sector. Mainly, three kinds of products are sold and they are coffee, tea, and packaged water. Hence, most of the companies manufacture and sell just these three products. However there is a slight shif in the consumer taste these days the market for energy drink is opening up and it seems to be promising. Hence the investor may want to check for companies within the sector that is best positioned to lever age this change and adapt to it.
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