Don't Join The Industrial Average

Apr. 20, 2021 5:26 PM ET, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 61 Comments

Summary

  • Normally, within each sector, there are some segments that are more attractive while others are less.
  • We struggle to find such a segment within the Industrials sector, but one category does stand out above all others: Shipping.
  • Not only is shipping the most attractive segment within the Industrials sector, but we believe it's one of the best places to be invested within the entire market.
  • While we assign an average allocation/rating to the sector, we certainly don't suggest to adopt the same approach when it comes to the average industrial stock.
  • Looking for more investing ideas like this one? Get them exclusively at Wheel of Fortune. Learn More »
Junction in Hong Kong
Photo by CHUNYIP WONG/E+ via Getty Images

What Does "DJIA" Stand for?

On May 26, 2021, the Dow Jones Industrial Average ("DJIA") will celebrate its 125th anniversary.

Back in 1896, the DJIA was based on 12 industrial stocks whereas nowadays industrial stocks only make up 17.9% of the famous

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This article was written by

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The Fortune Teller is a team of two analysts with over 30 years of market experience between them. One of the principles is a formerly licensed investment advisor with a background in asset management. They also hold BAs in Accounting & Economics and Computer Sciences, as well as MBAs, which they use to inform their stock selections

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Analyst’s Disclosure:I am/we are long CMI, CVA, DHT, DLNG, EURN, FLR, FTAI, GD, GE, GLOG, HMLP, PWR, SPR, STNG, TGP, TK. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am/we are short covered CALLs on some of these names.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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