|
In the previous chapter, Fisher Investments discussed why basic material prices are typically the most important Materials sector driver. While a good guideline, it's not always true for chemicals because chemical production is not based on monetizing limited assets in the ground, but rather in processing abundant existing assets into something else. Chemical producers' earnings are driven by production growth combined with prices, minus the cost of production. With that in mind, Fisher Investments looks at Chemicals' major sub-industries more closely (Diversified Chemicals is excluded since it's a combination of Commodity and Specialty Chemical.):
- Commodity Chemicals
- Specialty Chemicals
- Fertilizers & Agricultural Chemicals
- Industrial Gases
For more information or to purchase Fisher Investments on Materials, click here.
|