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Bellwether

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bellwether investment & finance definition
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A stock, index, bond, or other financial instrument that shows the direction of a market. Significant and widely owned stocks may become bellwethers of market direction.

 


Bellwether
What It Is:
A bellwether is a security or indicator that signals the market's direction.

Bellwether
It is the type of security which influences the market price and future happenings.
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A bellwether is any entity in a given arena that serves to create or influence trends or to presage future happenings.

Bellwether stocks are generally viewed as an indicator of overall market or sector direction. The term bellwether itself is used to describe a company that is recognized as the leader in its industry.

A bellwether stock is a stock which tends to lead the sector that it is in, along with the market as a whole. In some parts of the world, these stocks are known as 'barometer stocks.

Bellwether Traditionally the sheep (with a bell on its neck) that led the flock. Now used to describe a closely followed stock that leads the market.

Bellwether bond
For the U.S. market, it is the 10-year Treasury note, which recently replaced the 30-year Treasury bond as the benchmark for evaluating the bond market in general. See Types of Bonds.
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Bellwether A stock whose performance is indicative of the overall market direction.

Bellwether issues
Related: Benchmark issues.
Below par
Less than the nominal or face value of a security.

Bellwether
A market bellwether is a security whose changing price is considered a signal that the market is changing direction. It gets its name from the wether, or castrated ram, that walks at the head of a shepherd's flock.

Bellwether Companies
Housing Starts
Leading Indicators
Industrial Production and Capacity Utilization
New and Existing Home Sales ...

bellwether
leading economic indicator
Help Wanted Advertising (business term)
Lagging Indicator (in banking) ...

Also known as Bellwether Issues. Not defined by size, a Blue Chip company is a market leader, one of the safest investments available. To attain Blue Chip status the corporation will have produced consistently strong results over a period of time.

Also known as bellwether. barren money Money that is not earning interest. Example: non-interest bearing checking account,... barriers to entry Circumstances particular to a given industry that create disadvantages for new...

Bellwether issuesRelated: benchmark issues. Benchmark The performance of a predetermined set of securities, for comparison purposes. Such sets may be based on published indexes or may be customized to suit an investment strategy.

Bellwether: A stock viewed as a leader in the market, e.g. "as GM goes, so goes the market." Also a bellwether or benchmark issue in the cash bond market, e.g. the most recently auctioned 10-year bond.

This is also known as a bellwether and generally involves only one stock or bond that investors widely believe can be used as an accurate state of condition when it comes to the stock market, and how well it is doing.

Terms that are often used in conjunction with blue chip include "bellwether" and "large cap." Bellwether is a term used to describe a company that is recognized as the leader in its industry.

Long a tech bellwether and one of the industry's top makers of hard drives, the company posted $0.31 per share in fiscal Q2 earnings and missed the average analyst estimate. Profits were also down sharply from last year's $1.

Blue chip stocks are sometimes referred to as bellwether issues.
For more information, read our What Are Blue Chip Stocks?.

Also called on-the-run or current coupon issues or bellwether issues. In the secondary market, the most recently auctioned Treasury issues for each maturity.
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Following the yield on this key security-the "bellwether" of the bond market-the long bond helps guide investors on interest rate levels, gaining a sense of where the market perceives interest rates will be heading.

A U.S. Treasury debt obligation that has a maturity of 30 years. The 30-year Treasury used to be the bellwether U.S. bond but now most consider the 10-year Treasury to be the benchmark.

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The Standard & Poor 500, more commonly known as the S&P 500, is a weighted index of the stock prices of the 500 largest American companies. It is considered a bellwether for the American economy and is used to predict its direction.

[Harvey] benchmark issues Also called on-the-run or current coupon issues or bellwether issues. In the secondary market, it's the most recently auctioned Treasury issues for each maturity.

See also: Market, Stock, Investment, Share, Vesting

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