Steve Weiss Buys Caterpillar and XLI: A Trade Tracker Analysis

Steve Weiss's Latest Buys

• 🎯 Steve Weiss has increased his exposure to industrials by purchasing XLI and Caterpillar (CAT).
• 💡 These purchases are intended to balance his portfolio, which is heavily weighted towards tech stocks like Meta and Microsoft.

Rationale for Caterpillar Purchase

• 💰 Weiss views Caterpillar as undervalued and a good entry point, preferring it over Deere due to Deere's current high valuation.
• 📈 The purchase is not a hedge but a way to participate if the market looks past economic concerns towards potential Federal Reserve easing.

US-China Trade Relations and Industrials

• 🤝 The purchase of Caterpillar may also be a play on potential easing of US-China trade tensions and tariffs.
• 🇨🇳 Weiss notes that China is looking for an off-ramp in negotiations, which could benefit companies like Caterpillar.

Performance of the Industrial Sector

• 🚀 The industrial sector is the best performing sector year-to-date, with significant overweighting in ETFs like JOTEF.
• ✈️ While defense names are struggling, the aerospace component within industrials is performing remarkably well, with stocks like GE Aerospace, RTX, and Boeing showing strength.
• 📊 XLI is currently flat as it was a recent purchase, while CAT has seen positive movement.

Contrasting View on Industrials

• ⚠️ Brian Bellski, a peer, holds a neutral stance on industrials, citing fundamentals that lean slightly negative in his opinion.