Durable-Goods Orders as an Economic Indicator
Watching economic indicators can be an advantageous approach to identifying opportunities to introduce tactical tilts to a portfolio as market conditions change. The volume of durable-goods orders, an important signal for the demand of manufactured products and forward-looking factory production, has recently shown positive progress.
As noted in this article, “following steep declines in March and April, orders jumped sharply in May, June and July as the economy reopened from coronavirus-related shutdowns. Recent indicators have suggested the manufacturing economy is bouncing back from disruptions.”
It may be a beneficial exercise to evaluate the manufacturing sector and determine which companies are undervalued given adjusted expectations.
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- Anthony Winkels is Managing Partner and Wealth Advisor at Fortis Wealth Management
