Scalper1 News
Two sectors deserving your investing scrutiny. Defence Has it struck you that whilst global economic and thus earnings growth is slowing, defence spending is accelerating? This is logical: “All politics are local”, as Tip O’Neill quipped years ago. Thus, politicians are rallying the masses against the “bad foreigner” who is to blame for the mess that politicians keep making at home by not structurally reforming their economies. Investment implication : keep buying shares (or a credible sector ETF), particularly in the defence sectors of America, Europe, Japan, South Korea and Australia (who want to increase defence spending by 80 per cent over the next decade). Transport Is economic growth really as terrible as all that? (Or are large investment banks merely using some flicks of bad news in order to drive profits by driving trading turnover, now that margins have collapsed?) Were economic growth so dire? Then why has America’s Dow Jones Transport Sector been gaining for the past six weeks? According to the Financial Times (FT) of 27th February, p. 15, ” The rebound for the closely watched sector, which includes 20 companies such as United Parcel Service (NYSE: UPS ), railway Norfolk Southern (NYSE: NSC ) and Delta Air Lines (NYSE: DAL ), is seen as a sign that the broader US equity market can gain further momentum.” All of this lends credibility to our long-held view that slowly, America’s Economic Time® is improving ; indeed, this is why the Fed has started raising rates, albeit gingerly. Investment implication : Buy cheap American transport stocks or an appropriate American transport sector ETF. Scalper1 News
Scalper1 News