I hope that CAT's prior two down-trends do not repeat as severly this time, and they likely will not. There were two big sell offs in CAT (which also happen to match up exactly with the S&P and DOW drops from the same time periods) over thee last three years. As you look at CATs chart, CAT dropped 401% from May to Sep of 2011and another 23% drop from Jan to May of 2012. CATs current drop of 11% since Feb 2013 high of $95 is the only drop that does not correlate to the overall market indexes like before. Before the drops were likely triggered by the issues going on with Europe and in Washignto when everyhting tanked. This time the drop looks to be CAT Specific, and maybe somewhat overdone.
The fact that there's money out there isn't a good reason to invest in CAT. That money will go to companies that are increasing their profit, not decreasing their profit. Sure, some might move into CAT, but more will go into companies that are outperforming rather than underperforming.