bellwether
noun
, -ˌwe-\
Definition of bellwether
Keep scrolling for more
Synonyms & Antonyms for bellwether
Synonyms
leader, pacemaker, pacer, pacesetter, trendsetter
Antonyms
Visit the Thesaurus for More
Examples of bellwether in a Sentence
Recent Examples on the Web
Yost’s lawsuit angered communities scheduled to go to court as part of those bellwether trials. — Andrew Welsh-huggins, BostonGlobe.com, "Ohio attorney general sues to stop upcoming opioid trials," 1 Sep. 2019 Lover’s first week will serve as a bellwether for the health of music purchases as a business model, and several label executives and retail merchants think sales could reach 600,000. — Ed Christman, Billboard, "Will Taylor Swift's 'Lover' Conquer All With Another Million-Selling Debut?," 22 Aug. 2019 The smelt is important not merely in itself but as a bellwether of the health of the entire delta ecosystem — and the responsibility of humans as stewards of the environment is to not force species into extinction. — Michael Hiltzik, Los Angeles Times, "Column: Right-wingers again demonize the tiny delta smelt to protect Big Agriculture," 12 Aug. 2019 The annual San Diego confab is typically a bellwether of everything coming to screens big and small. — Angela Watercutter, WIRED, "The 10 Things We're Most Excited to See at Comic-Con," 16 July 2019 Semiconductor sales are expected to drop 12-13% globally, but Singapore in particular is often seen as a bellwether for the global economy. — Alan Murray, Fortune, "The Rise of the “Deep Fakes”: CEO Daily," 24 July 2019 Equipment-maker Caterpillar, whose shares are often seen as a bellwether for the global economy, rose 2.7%. — Alexander Osipovich And Nathan Allen, WSJ, "Stocks Surge After Trump Says He Talked With Xi," 18 June 2019 It is considered a bellwether trial that could force the defendants to reach a global settlement for all of the lawsuits. — Washington Post, "Federal data shows opioid shipments ballooned as crisis grew," 17 July 2019 It is considered a bellwether trial that could force the defendants to reach a global settlement for all of the lawsuits. — Mark Gillispie, BostonGlobe.com, "Federal data show opioid shipments ballooned as crisis grew," 17 July 2019These example sentences are selected automatically from various online news sources to reflect current usage of the word 'bellwether.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Keep scrolling for more
Keep scrolling for more
More Definitions for bellwether
bellwether
nounFinancial Definition of bellwether
What It Is
A bellwether is a security or indicator that signals the market's direction.
How It Works
Let's assume XYZ Company is an auto manufacturer. If XYZ Company stock typically falls before the rest of the automotive sector falls or rises before the rest of the automotive sector rises, we could consider XYZ Company a bellwether of the auto industry.
A security's bellwether status changes over time, but in the equities markets the largest, most well-established companies in an industry are often the bellwethers (the 20-year Treasury bond is considered a bond bellwether). Usually profitable and stable, most have a solid competitive position, established customer bases and solid brand loyalty. Some have even proven to be exceptionally resilient during weak economic times. These stocks also form the foundation of most major market indices -- large-cap bellwethers dominate the Dow Jones Industrials, the S&P 500 and the Nasdaq Composite.
Why It Matters
There is a connection between bellwether status and institutional ownership. Bellwether stocks often have large institutional ownership, and institutions often have tremendous influence on stock prices. But because most mutual funds engage in some form of indexing -- most commonly by benchmarking against the S&P 500 -- those investors who don't own bellwether stocks directly probably still have exposure to them through their mutual fund holdings.
Although bellwether stocks may signal things to come, they are not always the most attractive investments in their sectors. By the time a company reaches bellwether status, its market-beating growth days are usually well behind it and its enormous size makes meaningful expansion difficult to come by. Instead, investors may consider using bellwether stocks as indicators but investing in up-and-coming bellwethers that still have plenty of growth potential ahead of them.
Source: Investing Answers
bellwether
noun
English Language Learners Definition of bellwether
See the full definition for bellwether in the English Language Learners Dictionary
Keep scrolling for more