Industrial Indicator: CAT in Last Resource Investment Bubble

Chart of the Day: CAT in 70s Resource Investment Bubble

  • Investment in mining and resources in the US and globally at cyclical highs, which has helped capital equipment producers like CAT. 
  • Below, we can see what happened to CAT when the 1970s resource investment boom gave way
  • CAT upped its exposure to these markets with the acquisition of Bucyrus last year, at what looks like the peak of resource investment spending
  • If history rhymes in this investment cycle, CAT holders may be looking at years of relative underperformance

Industrial Indicator: CAT in Last Resource Investment Bubble - cat lt rel

Industrial Indicator: CAT in Last Resource Investment Bubble - perf 7202012