Complementary sector or industry

Based on the most helpful WSO content:

Complementary Sectors or Industries Influenced by Similar Factors:

• Industrials: This sector is often influenced by cyclical factors and can be researched by understanding where we are in the economic cycle. Sub-sectors like aerospace can be analyzed by talking to pilots, air traffic controllers, leasing companies, and airlines to gauge order levels for new models.
• Energy: Despite extensive primary research, the energy sector can be unpredictable. However, it shares some cyclical characteristics with industrials.
• Consumer Staples: Easier to analyze compared to retail or apparel, as trends can be identified by talking to retailers.

Choosing Coverage in Equity Research (ER):

• Firm's Decision: Generally, the firm decides the coverage based on their strategic needs and existing gaps in their research portfolio.
• Analyst's Input: While the firm usually makes the final decision, analysts may have some input, especially if they have expertise or a strong interest in a particular sector.

For more detailed insights, you can refer to the following threads: - https://www.wallstreetoasis.com/forum/asset-management/thinking-like-an…</a">Long term, concentrated, deep fundamental investing - https://www.wallstreetoasis.com/forum/private-equity/qa-pe-associate-at…</a">Best Industries to Specialize In

If you have more specific questions or need further clarification, feel free to ask!

Sources: Long term, concentrated, deep fundamental investing, Basic Overview of the Consumer Sector, https://www.wallstreetoasis.com/forum/hedge-fund/best-industries-to-specialize-in?customgpt=1, Q&A: PE Associate at a single-sector mid-market fund, How to pick your next sell-side research job