I would be tempted to say that these stocks are “industrials,” but that name has such a 19th century feel to it.
These stocks are focused on the B2B side of their respective businesses, but they’re not all stamping out widgets and sprockets. These are 21st century service companies and tech companies as well. They have built businesses that are important underpinnings of the economy. They’re the firms that may be invisible to consumers, but make the world turn.
Long ago, Charles Dow, the founder of Dow Jones & Company as well as the The Wall Street Journal, came up with a theory about the markets that became known, simply, as “Dow Theory.” Dow set out six precepts more than 100 years ago, which have been refined ever since.
His starting point was, you can tell which way the markets are moving if you watch the interaction of the transports and the industrials. If transports are expanding, then it’s likely industrials will also grow because the economy is demanding more products. If industrials are supplying more than the economy demands, transports will slack off.
The complexities begin from there, but the point is industrials are the bedrock of the economy. And as the economy recovers, finding the best will be very profitable. The following are my seven A-rated stocks to buy that will bore you to the bank.