Investors have been fickle this year. Before the New Year’s confetti had even settled, the market was in full-blown retreat, with recession-resistant safe havens holding up well and economically sensitive cyclicals bearing the brunt of the correction. Commodity stocks, for example, were clobbered. But since mid-February, market sentiment has shifted markedly toward sectors that would benefit from continued U.S. economic growth; commodities have rallied, too — a sign that investors now believe the gloomy forecasts of winter were overdone and spring may bring a rosier economic climate. For U.S. stocks, the shift toward growth was aided by attractive valuations for… Read More
Investors have been fickle this year. Before the New Year’s confetti had even settled, the market was in full-blown retreat, with recession-resistant safe havens holding up well and economically sensitive cyclicals bearing the brunt of the correction. Commodity stocks, for example, were clobbered. But since mid-February, market sentiment has shifted markedly toward sectors that would benefit from continued U.S. economic growth; commodities have rallied, too — a sign that investors now believe the gloomy forecasts of winter were overdone and spring may bring a rosier economic climate. For U.S. stocks, the shift toward growth was aided by attractive valuations for many fine companies unfairly caught up in the selloff. In many cases, those stocks are no longer cheap. But a careful perusal of the growth-stock catalog reveals that some excellent companies still trade at prices that make for attractive entry points. #-ad_banner-#One is Rockwell Automation (NYSE: ROK), which I recommended in early February. The stock is up about 14% since then, and not quite as cheap, but its valuation remains low enough to merit a buy for long-term investors. Rockwell Automation remains a beneficiary of the strong growth of the global robotics market. Robots now perform about 10% of all… Read More