A couple months ago we talked in this screencast about the ongoing weakness in the cyclical stocks. Talk about the rise in oil prices and ongoing weakness in the US economy have been rampant. On the earnings front however this weakness is not showing up in recent company reports. For better or worse some of this earnings strength seems to be coming from overseas. The ongoing big macro question is whether the domestic economy can eventually generate its own sustainable cyclical recovery especially in light of higher oil prices. In today’s screencast a look at the tentative revival in cyclical stocks.
Items mentioned in the above screencast:
Why has the American economy slowed? (Gavyn Davies)
Companies are doing well on the top line this earnings season to-date. (Bespoke)
American earnings power. (The Reformed Broker)
Industrials vs. consumer staple stocks. (StockCharts)