Two weeks running the Dow Jones has been a bastion of hope in an otherwise grim market. The index is fortified with steel and brawn and men of industry, not software nerds selling software designed to sell software. It is these men and their industry that will lead us out of the trenches and onto the offensive.
Look for physical industries like Machine Tools and Industrial Equipment to lead on the next bounce. I will only invest in companies servicing the United States, the only industrious nation that can hold its water when the going gets tough.
Investors are spooked. We have generational uncertainly in politics, the Chinese and other fake capitalist nations risk breaking their currencies, and oil is back to being a cheap sludge much to the chagrin of resource cursed Arabian nations.
The Utilities sector is up nearly 8% year-to-date. Certain REITs are doing well. Walmart, telecommunication, etc. If American social media companies are worth 30-40% less than we perceived them last month then Chinese social media stocks are damn near useless.
If you are itching to increase your equity exposure next week, look to the Dow Jones and its core components. Investors having been hiding out there. Conversely, they may be next to meet the guillotine if we decidedly turn lower. But at least for the next 5 market days, my data is optimistic.
More tomorrow after I complete the Exodus Strategy Session which was all over last week’s action.
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