FYI: Shares of Caterpillar (CAT) have been an underperformer for most of 2018 due to slower sales growth outside of the United States. In recent weeks, this has not been the case. We have witnessed a big rotation into CAT as well as other Industrials as investors are looking to jump on laggards eyeing a rally.
CAT has resembled the performance of emerging markets over the past five years. Logically, this should not come as any surprise seeing as most emerging markets are reliant on natural resources, which is just the right market for CAT’s earth moving equipment. But in recent weeks, we have seen CAT far outpacing the MSCI Emerging Market ETF.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/cat-vs-emerging-market/
