Let's face it, a big reason why the market is gaining so much is the worldwide expansion. We know the story of the U.S. economy, with lots of risks in the housing and credit areas. But it is largely U.S. companies that are making these big time profits overseas, and thus the corresponding increase in their earnings. Obviously the growth of China has been well documented, but there are many others. The Mexican economy has experienced solid growth. Dubai, in the Middle East, is exploding with expansion. They just created a man-made island, with tons of real estate being built. To capitalize on this, I'm looking to invest in the industrials. Caterpillar (CAT) is always in the mix. Manitowoc Corp(MTW) has a huge industrial crane business, and just opened an operation in Dubai. Their stock has doubled in the past year, but I think it can go higher.
General Electric (GE) is another company, believe it or not, that has huge overseas earnings. They just announced a good quarter, and said their infrastructure business is booming.
I'd be a buyer of all these stocks, including the ETF (XLI) which tracks industrials, including railroads, defense stocks, and large construction companies. GE is its largest holding.
So if you're worried about problems forthcoming in the economy, don't change your mind, because I still think there are plenty of issues. But this is one area of the economy that is booming, and should continue to grow. Commodities and Industrials. Follow the trends.