Crude oil has shown some remarkable signs of life of late after an
extended period of weakness took prices to multi-year lows. Prices have
jumped about 30% from a low hit earlier this year, leading many
investors to believe that a bottom has finally been established. That's
good news for the market, and good news for energy-related shares.
However, while the industry has broadly rallied since the low,
investors should pause before they jump into the energy sector. Further
volatility should be expected in the space, and the impact of the price
collapse will likely be felt for a long time. Instead, market
participants would be wise to look at the industrial sector, which is
tied to many of the macroeconomic trends benefitting energy but doesn't
carry the same risks.
It's understandable if investors remain concerned by industrial or
energy-related stocks. Both groups continue to see big swings, and
that's always unsettling, even if the move is to the upside. The
important lesson for investors to learn is to remove emotion from the
equation as much as possible. Don't focus on day-to-day noise or rumors
or speculation. Instead, focus on the fundamentals of the companies, and
built your portfolio on facts and hard data. That is a strategy that
will work for you in any environment.
Let's look closer those Industrial Stocks: General Electric GE, Caterpillar CAT, Union Pacific UNP, Boeing BA, Alaska Air Group ALK
Source: The Street
