Everyone poured into the industrials from the defesnives after the QE bonanza/flop. CAT comes out and says the global economy still awful, so now industrial names dont look great. Industrial and tech sells off, pulls down the DOW-- people jump on the short side DOW ETF's and everything in the index gets sold off by them. Buying opportunity if you ask me.
Plus, hedgies and others are locking in some profits "while the getting is good" to have something worth printing in their quarters to keep their clients happy enough to "stay the course".
I would buy some of these names as they come down. Coke and others are still looking at 8-10% CAGR on shareholder's equity and thus their earnings if they keep their ROE and Payout ratio in line with historical averages. Set to reinvest and ride this into retirement.
What makes logical sense given a weak global economy (from the stand point of the investor, I mean)? Sell the heavy machinery and high price product tech companies? Or the small daily luxury soda/juice/ cigarette/spice/alcohol companies that keep everyone happy in both euphoric and apocalyptic periods?
deisel, just a caveat to your post, good observation, but I really wouldnt be selling all tech companies, some are real bargen, like INTC. Also, I wouldnt call soda a luxury, I mean, if by not really needing soda, you mean luxury, well I guess it could be seen that way, but through my observations over the last 35 yrs or more, it is a staple. Last, with the likes of KO or PEP or PG or KMB, etc, those companies you can buy at any price really and stick them in your IRA or whatever and come out very well in the end. GL!!!