List of Things to look at while doing Industrial Analysis

When investing in a stock market after doing economic analysis next thing one looks at is the industry in which one wants to invest his or her money. Here is the list of things which one can look at while doing industry analysis –

1. If one is sure that country economy is good then one should look at the industry which will be likely to get the most advantage out of the growth of the country and also the vulnerability of the industry to the business cycle of the country.

2. Government policies regarding the industry should also be looked, because government give some subsides to certain industries and for some it has strict regulations which cap the profit of such industries.

3. The degree of dependence of the industry on raw materials, if raw materials for an industry are easily available then it can get it at cheaper price which is not the case when raw material is scarce.

4. The elasticity of the demand of the products which the industry produces, if the product is such that consumer will keep consuming that is its demand will not fall even if the price rises then industry has more pricing power.

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