Nearly everywhere we look, we see huge amounts of money flowing back into "good time" trades.
During May and June, stock sectors that depend on a robust global economy – "good times" – took major hits to their asset values. They included home improvement giant Home Depot (home spending), base-metal miners (manufacturing and infrastructure spending), and transportation stocks (the shipping of goods).
Among the selloffs we found most worrisome, however, was America's largest public company, ExxonMobil (XOM). XOM is one of the best managed businesses in the world… and it's considered one of the world's most stable, most solid companies. In May and June, the stock sold off heavily. If folks can't stand the thought of owning XOM, it's a terrible sign for the overall market.
As you can see from today's chart, XOM suffered a decline from $68 per share to below $57… a huge move for such a large company ($320 billion market cap). But like many assets, shares have enjoyed a major rebound in the past few weeks… and have climbed back north of $62. Put this action in the "good news and good times" column.
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