Durable goods orders—excluding transportation—grew for the third month in a row in July after significant contraction during the early days of the Covid-19 crisis, indicating a renewed openness from consumers to long-term capital investments. While much of the overall durable goods spike was thanks to new auto sales, the 2.4% ex-transportation bump is largely attributable to strong home sales as the suburban migration continues in an enduring work-from-home era trend. Meanwhile, as big tech carries the Nasdaq and S&P 500® Index to new record highs, it’s also reshaped the roster of the world’s largest companies. 15 years can make a heck of a difference! Does that massive growth mean it's time to take another look at sector composition?
1. The surging housing market is showing a positive effect on durable goods...
Source: The Daily Shot, from 8/27/20
2. How big are the mega-caps?
Source: Statista, As of 3/31/2005 and 8/20/2020
3. Perhaps it is time to split big tech into physical (chips, computers, etc.) and on-line tech and to merge energy and materials to make them relevant again...
Source: S&P Dow Jones, as of 8/24/2020
4. More evidence that wearing face masks can stymie Covid-19....
Source: The Daily Shot, from 8/27/20
5. How has your State voted in the last ten elections?
Source: The Daily Shot, from 8/27/20
6. Worth a moment to ponder...
Source: The Daily Shot, from 8/27/20
7. Be careful what you click on!
Source: The Daily Shot, from 8/27/20
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Disclosure: The charts and info-graphics contained in this blog are typically based on data obtained from 3rd parties and are believed to be accurate. The commentary included is the opinion of the author and subject to change at any time. Any reference to specific securities or investments are for illustrative purposes only and are not intended as investment advice nor are a recommendation to take any action. Individual securities mentioned may be held in client accounts.
