There are times in the economic cycle when a particular group of stocks makes more sense than others, and today’s market presents investors with one extreme in the economic cycle and the capital and sentiment cycle. Every player in the stock market’s game seems crowded in one area, and that is the exciting technology sector, leaving behind some of the better (if not best) risk-to-reward ratios in other industries.
Some of these names are in the industrial sector, carrying underlying tailwinds that may not be present anywhere else in the market today. The reasoning ties to the overall situation in trade tariff negotiations between the United States and other nations, particularly China.
