Industrials Rise From the Ashes -- Part I
During the fourth quarter, much of the market's focus was on the U.S. election and the looming "fiscal cliff," but a very pronounced -- though less discussed -- development was taking place amid industrial stocks. After a modest pause early in the fourth quarter, most industrial businesses saw a pickup as the quarter progressed, and they are entering 2013 with accelerating business momentum. Across a wide swath of industrial enterprises, orders from emerging markets have seen a marked re-acceleration. Moreover, Europe is beginning to stabilize after two years of decline, and North America has seen continued firming.
This unexpected and positive change in direction has analysts raising 2013 earnings estimates for the industrials group, based primarily on a noticeable climb in activity from China. After 12 to 24 months of deceleration, growth is finally beginning to pick up in this globally vital region, with recent easing by the People's Bank of China beginning to stimulate domestic housing and infrastructure markets. Among other emerging markets, India, Indonesia and Brazil are also seeing higher activity levels. ...539 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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