Basic Materials

Who here can explain why the basic material industry has had such a great year. Experienced investors only.

 

That rules out 95% of ET.

 

Demand for basic materials from india and china. End of story.

 

(1) PE's very low. Which means they are LBO/takeover bait.

(2) Insane buybacks within sector

(3) Foreign investors i think find comfort in the sector as they are not buying America but rather World growth.

These are my theories.

 

He didn't specify profitable or not.

 

There is an unspoken rule that the less profitable you are the more experience you have here.