Gary Poster, with essential assists from Galyn Norwood, Phiroon Phihakendr, Jose Quijada, Pavandeep Kalra. It's cyclical time Contrarian investors should be looking at old-line cyclical stocks like DuPont.
Share prices are low and earnings can only improve as the economy finally picks up.
We're now at the point in the business cycle where investors are fundamentally conflicted. Both tech stocks and old-line cyclicals are sensitive to the level of economic growth. But while cyclicals are showing the first signs of a rebound, tech stocks are still getting battered. As I've written in recent columns, I think tech stocks will start heading up again when investors stop focusing on current earnings problems, and begin looking at the improving outlook for later this year. But this is also an excellent time for contrarian investors to diversify their stock holdings with blue-chip cyclicals.