No industry is free of cycles. Some macro trends have effects across the board. Others are selective, or mitigated by executive actions. The best investors use both alpha and beta to guide their stock trades.
Timing is nearly everything in a stock exchange ring. One of the most enduring images of stock market history relates to legendary investors making classic moves at precise points of business and economic cycles.
The purpose of this post is to suggest that August 2008 belongs to Chemicals Manufacturing. This bastion of the brick-and-mortar era has appreciated by over 80% in the two years ended June 2008, but has declined by 10% during the course of July 2008. What lies ahead?
The economic cycles of emerging economies are not in sync with those of the first world. U.S. investors can protect their dollars by investing in countries that need chemical manufacturing technologies.
Green business pressures have triggered a new cycle of chemical production revival in the United States. This is a second engine for Chemical Manufacturing Industry growth. The California culture of bold environmental conservation standards spawns a new breed of manufacturing units.
There is even more to drive the Chemicals Manufacturing Industry. Nano and biotechnologies fuel enormous business opportunities. Many patents will explode into markets for generics once their monopoly reigns are over.
The Chemicals Manufacturing Industry is rather densely populated. Not all the listings in stock exchanges will benefit in equal measures. It is a great season for domain experts to hunt for top picks.
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