Any thoughts? Where's the sector rotation going?
Just a thought: the market rebounds 27%, on average, before corporate earnings rebound. If you look for deep value plays, that rebound can be quite a bit bigger.
I bought shares today in ERJ. Brazilian supplier of small to mid size jet liners (i.e. fuel efficient). Great company, beaten down due to rising input costs/real. Based on conservative 09 earnings estimates and a historical P/E multiple of 19, I think shares could easily double. Seems to have hit technical resistance as well.
Still have my CAL short, so I have a hedge of sorts, if oil keeps demand from airlines lower than expected.
Anyhow, aerospace could hold some real value. Might be a good place to rebalance some hot commodities money, if oil/precious metals resume their correction. The market always looks ahead, and the rebound could be enormous.
Just a thought: the market rebounds 27%, on average, before corporate earnings rebound. If you look for deep value plays, that rebound can be quite a bit bigger.
I bought shares today in ERJ. Brazilian supplier of small to mid size jet liners (i.e. fuel efficient). Great company, beaten down due to rising input costs/real. Based on conservative 09 earnings estimates and a historical P/E multiple of 19, I think shares could easily double. Seems to have hit technical resistance as well.
Still have my CAL short, so I have a hedge of sorts, if oil keeps demand from airlines lower than expected.
Anyhow, aerospace could hold some real value. Might be a good place to rebalance some hot commodities money, if oil/precious metals resume their correction. The market always looks ahead, and the rebound could be enormous.
