Heavy Equipment sector call ... 1 year later
One year after predicting that mining equipment specialists like JOYG and BUCY would outperform their more diversified competitors like TEX and MTW, the outperformance by the specialists has materialized in earnest as diversification transitioned from asset to hindrance in a deeply impaired industrial base.
Recall that a year ago metal prices were extending an already unbelieveable slump, and any prior assumptions about sustainable demand from China and elsewhere to stoke a recovery had abruptly evaporated.
Did I nail this call? You be the judge ...
For the record, here is a chart of relative share performance among major equipment manufacturers over the past 12 months.