bellwether

noun
bell·​weth·​er | \ ˈbel-ˈwe-t͟hər How to pronounce bellwether (audio) , -ˌwe-\

Definition of bellwether

: one that takes the lead or initiative : leader also : an indicator of trends

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Synonyms & Antonyms for bellwether

Synonyms

leader, pacemaker, pacer, pacesetter, trendsetter

Antonyms

follower, imitator

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Did You Know?

We usually think of sheep more as followers than leaders, but in a flock one sheep must lead the way. Long ago, it was common practice for shepherds to hang a bell around the neck of one sheep in their flock, thereby designating it the lead sheep. This animal was called the bellwether, a word formed by a combination of the Middle English words belle (meaning "bell") and wether (a noun that refers to a male sheep that has been castrated). It eventually followed that bellwether would come to refer to someone who takes initiative or who actively establishes a trend that is taken up by others. This usage first appeared in English in the 13th century.

Examples of bellwether in a Sentence

She is a bellwether of fashion. High-tech bellwethers led the decline in the stock market. a county that is a bellwether in national elections
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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 2019

These 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.

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First Known Use of bellwether

13th century, in the meaning defined above

History and Etymology for bellwether

Middle English, leading sheep of a flock, leader, from belle bell + wether; from the practice of belling the leader of a flock

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More Definitions for bellwether

bellwether

noun

Financial 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

: someone or something that leads others or shows what will happen in the future

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