1/ Friendly reminder: on 9/21, the Global Industry Classification Standards (GICS) are undergoing a significant set of changes after market close.
Anyone doing anything with sectors or industry groups should pay attention! 🚨
Anyone doing anything with sectors or industry groups should pay attention! 🚨
2/ The Telecommunication Services sector is being renamed the Communication Services sector and will be significantly expanded via re-classification.
3/ Companies such as Disney, Comcast, Time Warner, Netflix, Facebook, and Alphabet (Class A and C) are all being re-classified into the new Communication Services sector.
4/ This means two things.
First, the new Communication Services sector is going to be important. Very important. Like 10% of the S&P 500 important.
First, the new Communication Services sector is going to be important. Very important. Like 10% of the S&P 500 important.
5/ Second, it means that all of your historical return and fundamental data for the Consumer Discretionary and Information Technology sectors is now worthless.
6/ This clearly has an impact for a variety of different strategies, with the most obvious being sector rotation strategies.
But anyone doing bottom-up, cross-sector analysis is suddently going to be comparing $FB and $GOOG against $DIS and $NFLX.
But anyone doing bottom-up, cross-sector analysis is suddently going to be comparing $FB and $GOOG against $DIS and $NFLX.
7/ Most importantly, @lhamtil is probably going to have a bear of a time doing his retrospective, cross-geography sector-based fundamental analysis.
So let's have a moment of silence for him...🕯
So let's have a moment of silence for him...🕯
