Looking to diversify your portfolio or searching for a promising sector to dip your toes into? Then you must pay attention to the consumer discretionary sector — the mirror of consumer confidence.
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More InformationNon-essential goods and services — automobiles, electronics, travel, entertainment — that consumers reach for when incomes rise. Three forces make the case.
Companies selling non-essential goods and services — automobiles, electronics, entertainment. Spending rises when incomes grow and the economy is strong, making the sector a mirror of consumer confidence and an amplifier of economic optimism.
Barometer of consumer confidenceFrom 2010 to 2020, the S&P 500 Consumer Discretionary sector returned 14.6% annually versus 13.6% for the index. It shines in bull markets and contracts in downturns, while emerging markets like China (+19.3% in 2022) and India (+14.1%) grow on rising incomes and urbanisation.
14.6% vs 13.6% S&P 500More than a growth story, this sector is a key economic indicator: strength signals a healthy economy, weakness is an early warning. It also offers diversification across sectors and geographies — especially valuable during periods of expansion.
Early signal + diversificationElevator pitches, deep dives, and financial results — straight from the executives running these businesses.
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Explore Sector · 03Banks, insurers and asset managers — the capital backbone of every market.
Explore Sector · 04Pharma, biotech and medtech — defensive growth driven by demographics and innovation.
Explore Sector · 05Machinery, engineering and logistics champions — Europe's hidden Mittelstand leaders.
Explore Sector · 06Chemicals, metals and raw inputs standing at the start of every value chain.
Explore Sector · 07Listed property and REITs — tangible assets, rental income and rate sensitivity.
Explore Sector · 08Software, semiconductors and digital infrastructure setting the pace of growth.
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