Investopedia

Continue to Site »

Bellwether

Filed Under »
Dictionary Says

Definition of 'Bellwether'

An event or indicator that shows the possible presence of a trend. The performance of certain companies/stocks and bonds are considered by analysts to indicate the condition of the economy and financial markets because their performance is well-correlated with a trend. Bellwether companies are usually the market leaders in their respective sectors.

Investopedia Says

Investopedia explains 'Bellwether'

A bellwether stock is a stock that is used to gauge the performance of the market in general. For many years General Motors was an example of a bellwether stock, hence the saying, "What's good for GM is good for America." Similarly, a rapid decrease in available steel may indicate economic recovery, since steel is used in manufacturing and building.

The word is a combination of "bell" and "wether". Shepherds would often hang bells around the necks of the sheep that led the flock in order to determine where they were in the fields.

Articles Of Interest

  1.

    Eight Items That Impact Daily Trades

    Find out which factors can help you squeeze more profit out of each position.

  2. Economic Indicators To Know

    The economy has a large impact on the market. Learn how to interpret the most important reports.

  3. What is a stock ticker?

    A stock ticker is a report of the price for certain securities, updated continuously throughout the trading session by the various stock exchanges. A "tick" is any change in price, whether that ...

  4. Institutional Investors

    Learn more about the advantages that financial institutions enjoy when buying and selling securities.

  5. Weighted Average

    Learn how to weigh the relative importances of data points in a calculated average.

  6. Bid-Ask Spread

    Find out more about this frequently referenced, but often misunderstood, term used to describe the price at which a stock is bought or sold at.

  7. Why Is Liquidity Important?

    Learn more on why liquidity is important to consider when examining a stock, next to its share price.

  8. Understanding The Ticker Tape

    We explain the meaning and use of that reel of symbols whizzing across your TV or computer screen.

  9. Whisper Numbers: Should You Listen?

    These unofficial forecasts hold the potential for insider insight - and investment risk.

  10. Translating Ticker Talk

    Stock tickers can say a lot about a company in just a few letters. Find out how to read them.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  2. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  3. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  4. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  5. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  6. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.
Trading Center