September 22, 2013
Morningstar shows the performance of the US stock indexes by sector, for the last 5 years. For Infocom Intelligence, three major sectors are more undervalued: technology, basic materials and energy (sectors in green). Since we are in the middle of the growth stage of the US economy, the technology sector will first benefits from expansion, followed by later stages’ growth, which are more cyclical (commodities, such as basic materials and energy). At the end of economic growth cycle, shorter supplies are pushing the price of commodities, and it boosts the profits of producers.
Editor, Infocom Analysis