Industrials can't catch a break
Companies like Caterpillar and Honeywell have yet to see a slowdown in demand, yet their stocks are like hot potatoes that no one wants to hold on to.
Here's a piece I don't want to write. Industrials seem determined to replay 2008. It doesn't matter that things are much better for them. It doesn't matter that there is ample credit around the world, something that crushed them the last time around.
It doesn't even matter that none, not one, of the industrial stocks I am close to -- Honeywell (HON), United Technologies (UTX), Cummins (CMI) or Caterpillar (CAT) -- have seen a slowdown. They all get whacked.
This endless decline is playing havoc with the performance of anyone who is trying to keep pace with the averages. Owning them has been anathema to making money.
At the same time, the most overvalued and overstretched players are the recession stocks. But many of those have yield protection, and all are levered to the decline in commodity costs. If it weren't for the strong dollar, people would be raising numbers like crazy.
Related Articles
I see no end to the decline of these stocks if Europe stays weak, China slows down and we bump along in a near-recession economy.
I think these declines are pure panic. But there seems to be a hot-potato effect going on here. No one is willing to own them through this period, somewhat similar to the mineral and oil stocks they now seem to correlate perfectly with.
Oddly, retailers, so geared to "strapped" consumers, have held up great, while industrials, which are levered to worldwide growth but especially emerging-growth trends, just can't stop plummeting.
Bottom-fishing has become a huge sucker's game, even for those companies that are seeing strong demand. We got a great channel check out of Caterpillar on Friday morning, and no one cared at all.
Be careful with this group. It can't bottom until the numbers get cut or we get to 2008 levels and you will have to buy them no matter what.
Either way, the bottom does not seem to be at hand.
At the time of publication, Cramer was long CMI.

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for his charitable trust.
This endless decline is playing havoc with the performance of anyone who is trying to keep pace with the averages. Owning them has been anathema to making money.
jimmy your going to buy back Orcl @25.06 , What is that jimmy , what is that .Jimmy I use to sell on the news , jimmy you know that old saying, that has been around even before you were born, sell on the news , I bought orcl @ 9.10 a few years ago. jimmy your a killjoy ., your in nomans land,
good bad or ugly , your insight is poop ,. your just waving a flag with a bullet proff vest . Jimmy jimmy jimmy , I don't think I will buy your next book , pull a rabbit out of your hat , dancing boy.
THEY ARE ALL BANKRUPT AND YOU WILL HAVE NOTHING REMAINING IN YOUR RETIREMENT ACCOUNT! SELL, GET-OUT AND DON'T LOOK BACK! ROYAL AHOLD(BAKED GOODS), PARMALAT(DAIRIES), GENERAL MOTORS(2009 EMERGED 2010), HVIDE MARINE(1999), POLAROID(2001),CIRCUIT CITY, BANKUNITED FINANCIAL CORPORATION, EXTENDED STAY HOTELS, BARNETT BANK, SOUTHEAST BANKING CORPORATION, EASTERN FINANCIAL CREDIT UNION, GENERAL GROWTH PROPERTIES, WINN-DIXIE(2005), K-MART(2002), ASIA PULP & PAPER, WASHINGTON MUTUAL,PILGRIM'S PRIDE CORPORATION, NORTEL NETWORKS, EDDIE BAUER(APPAREL), GATEWAY(2007), ATARI, ADVANCED DIGITAL INFORMATION CORPORATION, WORLDCOMM(2002), ENRON(2001), NCR, LEHMAN BROTHERS, SEGA GAMEWORKS, BEAR STEARNS,360 NETWORKS, MCCLEOD USA, CONTROL DATA CORPORATION, AMDAHL, CALCOMP, WANG LABORATORIES, DATA GENERAL, BETHLEHEM STEEL CORPORATION, NATIONAL STEEL CORPORATION, RITZ CAMERA, LYONDELLCHEMICAL, ALOHA AIRLINES, INDYMAC, SHARPER IMAGE, FLEETWOOD ENTERPRISES, ADELPHI COMMUNICATIONS, SIX FLAGS THEME PARKS INC. ., ATLAS AIR CARGO(EMERGED 7/2004), HOLSUM BAKERY, INTERSTATE BAKERY CORPORATION(9/2004), DELPHI AUTO PARTS, LEAR CORPORATION, VISTEON AUTO PARTS, PAYLESS CASHWAYS INC., STORAGE TECHNOLOGY CORPORATION(1984), BUILDERS SQUARE(1999, EMERGED 2001), KB TOYS, KRB(MBNA CORPORATION), LONGS DRUG STORES, TANDY CORPORATION, GLOBAL CROSSING LIMITED(2002), CONSECO INC.(INSURANCE 2002), UNITED AIRLINES(2002), CIT GROUP INC.(2009), DELTA AIRLINES(2005), REFCO INC.(FUTURES TRADER 2005),NORTHWEST AIRLINES(2005), EASTERN AIRLINES(1989), US AIRWAYS(2004), CONTINENTAL AIRLINES(1990), BRANIFF AIRLINES(1982), SOUTHLAND CORPORATION(1990, EMERGED 1991), ZENITH ELECTRONICS CORPORATION, PACIFIC GAS & ELECTRIC(2001), CALPINE(2005, EMERGED 2008), LEVITT & SONS, PETROLEUM HELICOPTERS, BORDERS BOOKS, PAN AMERICAN AIRWAYS(1991), ETC. THEY ARE ALL BANKRUPT AND YOU WILL HAVE NOTHING REMAINING IN YOUR RETIREMENT ACCOUNT! SELL, GET-OUT AND DON'T LOOK BACK!
Fear of today's market is rampant.....................time to selectively buy for future selling........baby boomers selling stocks today are being replaced by 8 Asian workers and four South American workers..............they will buy stocks in the global economy.............good USA company stocks are going to create wealth somewhere..............follow demegraphics and money always appears!!!!!!
MORE ON MSN MONEY
DATA PROVIDERS
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.
LATEST POSTS
All hail the bull market, which ended the week with a big rally. But it also is starting to look a little like 1987, which suffered an epic blow-out.
FIDELITY VIEWPOINTS
- How to sell covered calls - Fidelity Investments
- Savvy year-end tax moves to consider now - Fidelity Investments
- Seven ways to prepare for tax changes
- Five reasons an annual review is crucial - Fidelity Investments
- Take a look at mid caps now - Fidelity Investments
- State of the sector: Health care - Fidelity Investments
VIDEO ON MSN MONEY
ABOUT
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.

