After recovering from the nastiest flu of my adult life…
I looked at major indexes and was pleased.
The S&P 500 increased by 0.6%.
The technology-heavy Nasdaq Composite edged higher by 0.5%.
And at the same time, the Dow Jones gained 335 points or roughly 1%.
Dow Jones Chart
It was the third-straight day of gains for the major indexes in a week of potential market-moving events: corporate earnings, midterms, and inflation data.
Right now, investors are focused on midterm elections that will determine control of the House and Senate for the remainder of President Joe Biden’s first term.
Wall Street has always preferred a split Congress or White House, whose political gridlock impedes major policy changes, creating a favorable outcome for equities.
One stock that’s benefited from the midterms is Caterpillar (CAT).
The construction equipment company is up 45% off its lows.
And it’s currently shelling out a dividend yield of 2.67%.
That’s in contrast to the manufacturing, construction, and mining industries' yield of 2%.
Looking at the company's dividend growth, its current annualized dividend of $4.80 is up 12.1% from last year. In the past five-year period, Caterpillar has increased its dividend four times on a year-over-year basis for an average annual increase of 8.90%.
Caterpillar Stock Chart
If you’re surprised the price of Caterpillar is soaring high without any particular reason, that’s because institutional investors are aggressively trading the stock back and forth.
Earnings growth looks solid for CAT for this fiscal year. The Zacks Consensus Estimate for 2022 is $12.65 per share, representing a year-over-year growth rate of 17.02%.
With that in mind, it’s easy to see why some investors are loading up on CAT.
But this is not to sell you on buying the Caterpillar (CAT) stock.
If that’s all you do, you’ll miss out on the bigger picture.
In my note to clients this morning, I said it feels like 2006 when the big industrials took the wheel and kicked off a strong run in commodities and global growth names.
After four straight quarters of double-digit earnings, many U.S. energy corporations had excess cash. And so, when Wall Street made bets for next year’s winning stocks, the consensus was building around commodity sectors such as oil and gas services.
A similar story is playing out today.
As the Dow Jones rallies like it’s 2006, I’ve found a way to profit from the index.
It’s not the traditional buy-and-hold strategy.
I’m not trying to time the bottom.
And this doesn’t require me to buy stocks or bonds like everyone else.
Instead, I’m leveraging price swings (which is where the money is).
I do this using a simple roadmap called PVA. It shows me where prices are headed and when to cash in with the best risk-reward setup.
The PVA roadmap has given my readers multiple chances to collect 528%, 742%, and even 1,329% in eight weeks, but this new opportunity could do even better.
I have free training that explains how this works; you can watch it here.
Feel free to contact me or any team member with questions.
Original Post Can be Found Here