By Markos Kaminis (Wall St. Greek):
Against my better judgment, which is never a good way to start out a long argument, I’m saying hold your nose and buy Caterpillar (CAT). Bear with me here, because there’s an important point to be made regarding companies and stocks. This stock has already gained the favor of value seeking capital, as is evident by its recent price action, and is poised to move higher on more Federal Reserve fueled fervor and a sector shift into cyclical stocks that seems to be underway.
I say “against my better judgment” because of my economic and geopolitical view for the year ahead, which is not favorable. My economic contention has been well documented in my recent work on the economy (see more). However, oftentimes the economic environment and corporate operating outlook of a company do not align perfectly with a stock’s performance. This is