Earlier tonight I was reading a thread on this board which has some discussion about diversifying and sectors. I've now tracked down answers to some of my longstanding questions about sectors: who allocates a company to a sector? how do they allocate it? when does an allocation change? (all in the FAQ at http://www.gics.standardandpoors.com/ ).
It seems that the whole GICS classification system exists to enable large scale comparisons of companies across exchanges and national economies and that it's part of something I tend to label the Great Index Standover.
I got curious about sectors when I was looking at some companies that seemed to be direct competitors but that are classified differently. I had thought that I could use them to limit my universe of shares, especially when looking for long-term holds. Now I'm thinking the main use might be as an indicator of how the institutions might behave
I'd be interested to know if members of this board actually use the GICS sectors in your analyses, both technical and fundamental. And if you use them, how do you use them and how much do you rely on them?