Early Retirement & Financial Independence Community - View Single Post - Stock Market -- What stage of the business cycle and what is in demand?

dmpi · 05-19-2007, 03:02 PM

A good percentage of large cap profits are generated through international sales. This is a tread trend that will continue and only get bigger. Therefore I don’t see the US Business cycle as playing as larage of a role as before. That said, compared to the other sectors; large caps are best positioned to profit from going international.
Also after the 2000 dot com crash, I see a general trend toward diversifying ones portfolio. This caused a drain in large caps while people moved to other sectors. This trend is winding to a close as most people who are going to diversify have already done so. The end result of this is that the large caps have been undervalued for years. We are now seeing billionaires buying into large caps, let alone all the M&A activity. I'm thinking large caps will be the sector to be in at least for the next couple of years.

05-19-2007, 03:02 PM	#4
dmpi Recycles dryer sheets Join Date: May 2006 Posts: 374	A good percentage of large cap profits are generated through international sales. This is a tread trend that will continue and only get bigger. Therefore I don’t see the US Business cycle as playing as larage of a role as before. That said, compared to the other sectors; large caps are best positioned to profit from going international. Also after the 2000 dot com crash, I see a general trend toward diversifying ones portfolio. This caused a drain in large caps while people moved to other sectors. This trend is winding to a close as most people who are going to diversify have already done so. The end result of this is that the large caps have been undervalued for years. We are now seeing billionaires buying into large caps, let alone all the M&A activity. I'm thinking large caps will be the sector to be in at least for the next couple of years.