Why 50% of Your Stock's Movement Is Out of Your HandsThe Research Behind Sector & Industry Analysis
When you buy a stock, you’re not just betting on that company—you’re also betting on its industry and sector. Research shows these group-level factors account for roughly half of your stock’s price movement, whether you realize it or not. This isn’t opinion. It’s backed by decades of market research. The Core Finding: The 50% Rule William O’Neil, founder of Investor’s Business Daily (IBD), conducted multi-decade research analyzing the best-performing stocks across 130 years of market history. His findings established a clear hierarchy of what drives stock prices: ...