Mike S. Newton, CIM FCSI Industrial Select Sector SPDR Fund XLI-N WAIT May 22, 2020

XLI charges only 10 basis points, pays a small 1.58% dividend yield, but it holds some heavy hitters: Honeywell, UPS, Union Pacific, Boeing, Raytheon and Caterpillar in that order. Yes, GE also sits in this basket, but so do Lockheed Martin and Deere. The biggest holding, Honeywell, has exposure to defense, but more so automation in manufacturing, a growing area and one that’s needed in the current labour shortage. Read: Canadian Tire, Savaria & XLI

Large industrials are strong seasonally from late October to end-Decemeber, then January into May. If we see rotation out of tech, industrials will benefit. He expects this to happen. XLI is currently at support.

Given all the economic uncertain, the agriculture sector isn't willing to invest in capital equipment (i.e. Deere), so this sector lacks investor excitement.

Seasonal stock that will continue to own. Jan-May good time to own shares. Will continue to own. Recent pullback a good time to buy. 

Likes industrials in the US compared to other sectors because there's growth here.

He likes US industrials. XLI has done well but can go higher. The rally in the US is expanding beyond megatech already. Aerospace and defense on drivers, and this holds big names like Raytheon.

Broadly speaking, likes industrials. Top names here:  CAT, RTX, GE, UBER, UNP. BA would be in the top 10, but #10 at this point. In general, infrastructure spend will be higher. Overall US economy is not going into recession, so some of these names are undervalued. This sector has room to catch up to technology. Brand-new 52-week high today.

Makes a lot of sense. Also consider PAVE.

Industrials have done very well for him, but are now expensive at 24x forward PE, higher than the S&P. Industrials are cyclical, too.