Industrial Stocks Have the Calendar At Their Back

Includes: IYJ, VIS, XLI
by: TickerSense

A couple of days ago we highlighted how based on seasonal patterns the Technology sector could face some headwinds in the coming months, as the sector is entering a period of time which has resulted in negative returns over the last five years.

That got us thinking about what sectors (if any) are entering a period of time which has yielded positive returns. One which stood out was Industrials. Over the last ten and five years, the sector has tended to rally in the coming months (red dot represents yesterday's date).

click to enlarge
industrial returns

Editor's note: Industrial sector ETFs include iShares Dow Jones U.S. Industrial Index (NYSEARCA:IYJ), PowerShares Dynamic Industrials (NASDAQ:PRN), Industrial Select Sector SPDR (NYSEARCA:XLI), Rydex S&P Equal Weight Industrial (NYSEARCA:RGI), Vanguard Industrials ETF (NYSEARCA:VIS).