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Bellwether

A bellwether is any entity in a given arena that serves to create or influence trends or to presage future happenings.

The term is derived from the Middle English bellewether and refers to the practice of placing a bell around the neck of a castrated ram (a wether) leading its flock of sheep. The movements of the flock could be perceived by hearing the bell before the flock was in sight.

In sociology, the term is applied in the active sense to a person or group of people who tend to create, influence or set trends.

In politics, the term is more often applied in the passive sense to describe a geographic region where political tendencies match in microcosm those of a wider area, such that the result of an election in the former region might predict the eventual result in the latter. In a Westminster-style election, for example, a constituency, the control of which tends frequently to change, can mirror in its popular vote the result on a national scale.

  • In Australian federal elections, the electoral divisions of Eden-Monaro in New South Wales and Leichhardt in Queensland have elected Members of Parliament from the party which won government at every federal election since 1972. The electoral division of Macarthur in New South Wales was a bellwether from the 1949 election until 2004. However, at the 2007 election Macarthur stayed as a Liberal seat despite a change of government, with sitting MP Pat Farmer narrowly surviving a 11% swing against him. The state of New South Wales could also be considered a bellwether, as the party which wins government has won the majority of House of Representatives seats in that state at every election since 1963. Unlike many bellwethers, these are cited by analysts solely for their record and are not usually attributed demographic factors that reflect the median of Australia.
  • In Canada, Sarnia-Lambton has voted for the winning party in every single federal election since it was created in 1968.
    • In Ontario, Peterborough has been won by the party who has won the most seats overall in provincial elections since 1977.

In the stock market, a bellwether (barometer stock in the UK) is the stock of a company that is regarded as a leader in its given industry. The performance of the stock is said to reflect the performance of the industry in general. These stocks are used as barometers for the rest of the market. General Motors is an example of a bellwether stock. As the major auto maker in the US, it sets the tone for the rest of the industry. General Motors also has contracts with companies in other industries so its performance is reflected in other sectors of the market.

Trends in expenditure in the UK advertising and marketing industry are monitored in the quarterly Bellwether Report, published by the Institute of Practitioners in Advertising (IPA).

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Source: Wikipedia | The above article is available under the GNU FDL. | Edit this article



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