Consumer discretionary companies sell products people want but don’t need. These include clothes, cars, vacations, and entertainment. When the economy is strong, people spend more on these items. When times are tough, spending slows down.

Building a portfolio of consumer discretionary stocks can help investors grow their wealth over time. These companies sell non‑essential goods and services, such as clothing, travel, entertainment, and luxury items. Their performance rises and falls with consumer spending, so choosing the right mix is important. This guide walks through how to build a balanced and thoughtful portfolio in this sector.