[bel-weth-er] 
| 1. | a wether or other male sheep that leads the flock, usually bearing a bell. |
| 2. | a person or thing that assumes the leadership or forefront, as of a profession or industry: Paris is a bellwether of the fashion industry. |
| 3. | a person or thing that shows the existence or direction of a trend; index. |
| 4. | a person who leads a mob, mutiny, conspiracy, or the like; ringleader. |
| bell·weth·er (běl'wěth'ər) n. One that serves as a leader or as a leading indicator of future trends: "The degree to which the paper is censored is a political bellwether" (Justine De Lacy). [Middle English bellewether, wether with a bell hung from its neck, leader of the flock : belle, bell; see bell1 + wether, wether; see wether.] |
| Main Entry: | bellwether1 |
| Part of Speech: | n |
| Definition: | an indication of a trend |
| Etymology: | Middle English belle 'bell' + wether 'castrated male sheep' |
| Main Entry: | bellwether2 |
| Part of Speech: | n |
| Definition: | one who takes initiative or leadership |
| Etymology: | Middle English belle 'bell' + wether 'castrated male sheep' |
| Main Entry: | bellwether3 |
| Part of Speech: | n |
| Definition: | a belled male sheep |
| Etymology: | Middle English belle 'bell' + wether 'castrated male sheep' |
Bellwether
A leading indicator of trends.
Investopedia Commentary
A bellwether stock is a stock that is used to gauge the performance of the market in general. General Motors was an example of a bellwether stock, hence the saying "What's good for GM is good for America."
Related Links
Economic Indicators to Know
bellwether
Case Study Securities maintain their bellwether status for varying periods of time. The common stock of General Motors Corporation was considered the stock market's bellwether for many years, until the American economy transitioned from manufacturing to computers and information management and GM's status was supplanted by the stock of International Business Machines. IBM stock's perch as a market bellwether was subsequently replaced by the common stocks of Microsoft and Cisco Systems, two major players in the new Internet economy. The 30-year Treasury bond served as the bond market's bellwether for nearly two decades, until the 10-year Treasury note took its place in the early 2000s. Unlike stocks that lost their status because of their company's products or services, the 30-year bonds were replaced as a benchmark because the U.S. government redeemed a large portion of its long-term debt, causing the 30-year bond to lose its important status in the bond market. The Treasury announced in late 2001 that sales of the 30-year Treasury bonds would be discontinued. |
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