Bellwether Stock

A stock that is believed to be a leading indicator of the direction of a sector, industry or market as a whole. Bellwether stocks are often used to determine the direction in which an industry or market is headed in the short term.

Bellwether stocks are typically large-cap equities that when performing well signal a bullish market but when performing poorly may signal a bearish market. Many different stocks may be classified as bellwethers; however, shipping and rail stocks have historically been particularly good bellwethers for the U.S. economy.


Investment dictionary. . 2012.

Look at other dictionaries:

  • bellwether — bell‧weth‧er [ˈbelˌweDə ǁ ər] noun [countable] FINANCE a type of stock, share etc whose price is thought to show the probable future direction of the market as a whole: • He periodically checks on a few properties chosen as bellwethers to see if… …   Financial and business terms

  • Bellwether — A bellwether is any entity in a given arena that serves to create or influence trends or to presage future happenings. The term is derived from the Middle English bellewether and refers to the practice of placing a bell around the neck of a… …   Wikipedia

  • Bellwether — An event or indicator that shows the possible presence of a trend. The performance of certain companies/stocks and bonds are considered by analysts to indicate the condition of the economy and financial markets because their performance is well… …   Investment dictionary

  • bellwether — [[t]be̱lweðə(r)[/t]] bellwethers N COUNT: usu sing, oft N n If you describe something as a bellwether, you mean that it is an indication of the way a situation is changing. [mainly AM, JOURNALISM] If interest in apartments remains high, it could… …   English dictionary

  • bellwether —  Not weather. Wether is an Old English word for a castrated sheep. A bellwether is a sheep that has a bell hung from its neck, by which means it leads the herd from one pasture to another. In general use, it signifies something that leads or… …   Bryson’s dictionary for writers and editors

  • bellwether —    Not weather. Wether is an Old English word for a castrated sheep. A bellwether is a sheep that has a bell hung from its neck, by which means it leads the flock from one pasture to another. In general use, it signifies something that leads or… …   Dictionary of troublesome word

  • stock market — I (Roget s IV) n. Syn. the market, the exchange, syndicate; see business 1 , market 2 . II (Roget s 3 Superthesaurus) n. stock exchange, stock brokerage, American Stock Exchange, Wall Street, New York Stock Exchange, NASDAQ. WORD FIND • agent who …   English dictionary for students

  • bellwether — n. male sheep that leads a flock (usually wears a bell); leader (Slang); talker, chatterer; stock or bond that is an indicator of the entire market s condition (Finance) …   English contemporary dictionary

  • barometer stock — ➔ stock1 * * * barometer stock UK US noun [C or U] FINANCE, STOCK MARKET ► a share whose performance is believed to show how a stock market is developing or changing in general → See also BELLWETHER(Cf. ↑bellwether …   Financial and business terms

  • Barometer Stock — A security whose price pattern is regarded as an indicator of the state of the overall market. All bellwether stocks are also barometer stocks …   Investment dictionary

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