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The economic market is growing but remains weak in the current worldwide volatile environment. For example, the U.S. financial markets have recovered from the low 2009 numbers to pre-recession levels in some areas. Financial institutions and individuals usually perform risky ventures via multiple transactions like stocks, mutual funds, bonds, currencies, and commodities to name a few. However, there are sectors in the U.S. economy that perform well in desperate financial times as described below.
Healthcare Sector
The health sector has proven to be strong even at times of dramatic change. This sector is composed of businesses that provide health-related services and products. In addition, it is less volatile compared to other market models. Reports show it has the highest net profit margin percentage of the entire economy, sector-wise, at 15.67%. The healthcare industries that have shown the best gains in the last years are drug manufacturers, medical instruments & supplies, medical appliances & equipment, and biotechnology. Regardless of the financial state of the country, Americans still need to visit the doctor and buy medication to treat medical emergencies and conditions. The majority of financial advisers agree that the healthcare sector will rise further due to the aging population that will increase the consumption of healthcare.
Basic Materials Sector
This sector is comprised of businesses involved in the processing, production, and discovery of both synthetic and raw materials. The materials sector has three main groups, which are paper & packaging, metals & mining, and chemicals companies. Furthermore, many businesses in this sector are performance leaders with gains of 11.65% in the net profit margin ratio. Although this is a more volatile market since it involves materials that are vulnerable to various outside conditions such as gold and agriculture. For example, agriculture is affected by factors related to emerging markets demand, regulatory, and weather issues.
Financial Sector
Credit stats have increased in the past year with positive results for financial institutions such as banks. The financial sector has gotten a 10.32% increase overall in the past year.
Conglomerates
The conglomerate sector which comprises large companies with diverse profiles has attained a 13.10% overall net profit margin. Conglomerates, also called multi-industry entities, work simultaneously on certain ventures. For example, Bajaj Holdings, Rand Capital Corporation, Mirrabooka Investments Limited, New Mountain Finance Corporation, Milton Corporation Limited, and China Everbright Ltd. are some conglomerates with the highest earnings return value for this sector.
This article is provided courtesy of Credit Season UK, a consumer finance website providing information and tools on bad credit loans and other personal credit services.