INDUSTRY BET

Strategy where investors or portfolio managers escalate or reduce holdings in an entire industry, rather than buying or selling individual stocks from that industry. Investors make industry bets, instead of company bets, because many of them believe it is easier to predict the future price trend of an entire industry than any individual stock.

Industry refers to a group of corporations that are the same in terms of their primary business activities. There are dozens of industry classifications that are normally grouped into bigger categories called sectors. Examples of industries include airlines, insurance, mining, retail, manufacturing, railroads, utilities, household, and pharmaceuticals, among others.