Truist’s Lerner is still overweight industrial stocks: here’s why
Truist’s Lerner is still overweight industrial stocks: here’s why Despite the ongoing pandemic and economic uncertainty, Truist’s Chief Investment Officer Keith Lerner remains bullish on industrial stocks. In fact, he is still overweight on this sector and believes that it will continue to outperform in the coming months. So, why is Lerner so confident in industrial stocks? Here are a few reasons: 1. Economic recovery: As the world continues to recover from the pandemic, there will be an increased demand for industrial goods and services. This is because industries such as manufacturing, construction, and transportation are essential for economic growth. As a result, companies in these sectors are likely to see increased revenue and profits. 2. Infrastructure spending: Governments around the world are investing heavily in infrastructure projects to stimulate economic growth. This includes building new roads, bridges, airports, and other public works. These projects require a lot of industrial goods and services, which will benefit companies in the sector. 3. Low interest rates: With interest rates at historic lows, companies in the industrial sector can borrow money at a lower cost. This allows them to invest in new projects and expand their operations, which can lead to increased revenue and profits. 4. Innovation: The industrial sector is constantly evolving, with new technologies and innovations being developed all the time. Companies that are at the forefront of these developments are likely to see increased demand for their products and services. Of course, there are risks associated with investing in any sector, and the industrial sector is no exception. For example, trade tensions between countries could impact the sector, as could any future disruptions to global supply chains. However, Lerner believes that the potential rewards outweigh the risks, and that industrial stocks are a good long-term investment. As always, investors should do their own research and consult with a financial advisor before making any investment decisions.