Posted on 05/24/2007 5:06:32 PM PDT by Kitten Festival
The Economy: You used to know good economic times were nearing an end when stock leadership rotated into such "late cycle" plays as steel, chemicals and machinery. But that, as they say, was then.
And this, as they also say, is now. And when it comes to shares of these and other "basic" industries, now is wow! Unlike past bull markets, when "quality" leadership was synonymous with new-age jack rabbits grouped in the tech, medical and retail sectors, slower-moving old America is stealing the show.
Credit a global economic boom that the U.S. not only made possible by defeating communism but is supplying with goods like steel and chemicals and machinery to the many countries now experimenting with the capitalist alternative.
Since the market turned up again two months ago, the industry groups that have done best besides energy include makers of heavy-duty trucks, up 20.2%; transportation equipment, up 19.8%; and material-handling, construction and general-industrial machinery, up 18.4%, 18.4% and 15.2%, respectively.
(Excerpt) Read more at ibdeditorials.com ...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.