A recent study found that investing in the IT sector is a smart choice, giving an average return of 18.1%. This sector deals with technology-based stuff like gadgets and services and has done well from 2010 to 2022.
Next up is the consumer discretionary part, which is about things we want but doesn’t really need. It gave around 15.3% average return. On the other hand, the communication services part didn’t do so great, only getting an average return of 8.4%. That makes it not so attractive for people who want to invest money.
InvestinGoal.com did the study. They looked at different groups of companies in a big list called the S&P 500 to see if they’re good and how much money they usually make. The IT part stood out because it kept growing, even though it had some tough times like losing 28.2% in 2013 and making a lot, 50.3%, in 2019.
Other parts that did well include the consumer discretionary part, which made around 15.3%, the healthcare part (doctors and medical stuff) with 13.4%, the industrials part (making things and building) with 13.2%, and the financial part (banks and money companies) with 12.3%.
But not all parts did great. The communication services and energy parts made less money on average, 8.4% and 10.2% respectively, even though the energy part did awesome in 2022 with a huge profit of 65.7%.
The big boss of InvestinGoal.com, Filippo Ucchino, thinks the IT part does well because it keeps coming up with new ideas and cool technology. He believes the stock market will be even better in the future because of artificial intelligence (AI). AI can look at lots of information, find patterns, and help investors make smart choices.