04-23-2020, 03:22 PM
Cost of inputs (oil, industrial metals, and other basic materials) are also going to be low for a while for a lot of these industrials, as are labor costs (automation will also continue to replace workers in this sector and drive up productivity). Borrowing costs are at all-time lows for the ones with good balance sheets.
The ones with long track records of surviving and thriving through even the nastiest downturns should do alright. Just like with REITs, I like the ones with clean balance sheets that are trading near 50% off.
The ones with long track records of surviving and thriving through even the nastiest downturns should do alright. Just like with REITs, I like the ones with clean balance sheets that are trading near 50% off.