When it comes to investing, machinery stocks play a crucial role in the stock market and the overall economy. At Extreme Investor Network, we understand the importance of staying up-to-date on market trends and industry developments to make informed investment decisions.
Recently, we have noticed that machinery stocks are not performing as well as expected. Despite the S & P 500 machinery group being up only 8% year to date, the S & P 500 industrial sector is up 12% and the S & P 500 as a whole is up 16%. This disparity raises concerns about the performance of machinery stocks and the potential risks involved.
One of the key players in the machinery industry, Caterpillar (CAT), is currently at a critical juncture and we believe it is at risk of breaking down. As a result, we are advising our readers to consider selling their positions in this stock.
Our analysis of the S & P 500 machinery industry, which comprises 17 stocks with a total market capitalization of $764 billion, reveals a troubling trend of lower relative highs to the market despite marking new highs over the past 18 months. This pattern is concerning and indicates a potential bearish outlook for the industry.
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