The Market Is Bigger than Tech

 | Jul 19, 2013 | 12:48 PM EDT  | Comments
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The market is bigger than Microsoft (MSFT), Google (GOOG), Intel (INTC) and eBay (EBAY).

This market is about General Electric (GE) and Schlumberger (SLB) and Bank of America (BAC) and UnitedHealth (UNH). We have so many OTHER ways to win away from tech that we don't want to be blinded by the high-profile disappointments.

Remember, financials are almost as big as tech in the S&P 500 and that's fabulous news for the market. I am dazzled by literally every single bank and broker. Regional, national whatever and they are, even after these terrific earnings they can still go higher. My favorite remains Wells Fargo (WFC), which won't get expensive until it's $50. But Bank of America can go back to $16 without much of an effort.

The industrials? Take a look at Eaton (ETN) if you like what you heard from Honeywell (HON) and General Electric and Ingersoll Rand (IR). That's the analogue.

UnitedHealth and Johnson & Johnson (JNJ) are the best proxies for how well healthcare's doing in this market and it is fantastic. These stocks, while expensive now, don't make sense to sell. How are you going to get back in?

Then how about that Schlumberger? International drilling is finally being spurred by the inexorable price of oil. I think that bodes well for tons of companies including BP, which I interviewed last night, and Occidental (OXY), as well as one that I am shocked isn't higher, Ensco (ESV).

Finally there's the commentary from Union Pacific (UNP). You think this country's not coming back? Go listen to that call. Autos? Oh my, they are strong. Chemicals -- including oil -- are amazing. Materials all good. Most terrific, I think, was coal. You need to watch coal. It's not going down. That's why I like Joy Global (JOY), but it is so hated after Jim Chanos talked about how you must bet against the commodity supercycle by shorting Caterpillar (CAT). Joy is regarded as CAT without the infrastructure diversity. I think it's just too cheap to avoid.

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