
NYSEARCA:XLI
This summary was created by AI, based on 3 opinions in the last 12 months.
Experts express a positive outlook on the Industrial Select Sector SPDR Fund (XLI) due to the ongoing cyclical economic rebound, highlighting opportunities in emerging markets and in geopolitical regions such as Europe and Japan. The fund is recognized as a cost-effective entry point into the industrial sector, particularly appealing due to its low expense ratio of 8 basis points. The recent geopolitical events, such as those occurring in Venezuela, indicate a longer-term push towards infrastructure development, which could benefit both multinational and U.S.-based companies within this sector. Additionally, industry veterans see major corporations like Honeywell (HON), General Electric (GE), and Boeing (BA) as key beneficiaries, especially with solid economic performance in the U.S. and a lack of recessionary pressures. As a positive note, the fund has entered a historically strong seasonal period, which generally lasts from late October to early May, further enhancing its appeal.
The strongest sector in the US for the month of December is the industrial sector. Seasonality is from October 28 to the end of December, takes a bit of a break in January and then takes off again from February to May. Technically, the chart shows that it is currently outperforming the market, trending higher and above its 20 day moving average.
His Top Picks are not “Buy & Holds”. They are Seasonal Picks so there is an exit strategy. Industrials tend to gain between October 28 and May 5th generally. There is a weak period in January. This has had an average gain of 13% over the past 20 years. Technicals are positive with higher highs and higher lows and above major moving averages.
(Top Pick Oct 25/13, Up 5.80%) Does well from Oct until end of December and then end of Jan until May. He exited at end of December. Back in Now.