Revisiting The Forgotten Case For Industrials

Global Economic Improvement and Spending Plans Should Benefit

The industrials sector has seemingly fallen in to the shadows as 2017 has gotten underway, following a strong showing in 2016. The sector has appreciated 6.5% year-to-date, below the 7.0% rise in the S&P 500 Index, and represents only the seventh-best growth of all eleven sectors in the index. This is a bit surprising given President Trump’s focus on stimulating the economy via a large infrastructure spending plan. In his address to Congress on Tuesday, Trump promised to spend $1 trillion on infrastructure projects. Although Trump did not state a timeline, it is expected that the spending would be rolled out over 10 years.

“I am sending Congress a budget that rebuilds the military,...