A Goldman Sachs note called yesterday’s ISM report “better than feared.” That’s one way of interpreting seven straight months of contractionary manufacturing data.
“Regardless of what Goldman thinks, the dynamic in the cycle is that you have backlog orders from periods of the supply chain shortage that are substantially overpriced, very high margin,” Van Sciver explains in this clip from The Call @ Hedgeye. “Caterpillar (CAT) and Deere (DE) are reporting their highest margins ever. This is true cyclical history right now.”
Watch the full clip above.