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► Investor Survey (help)
Industrial ETF Funds US ETF Funds First Trust Industrials ETF (FXR) Non - US ETF Funds Emerging Industrials (EID) |
Research Report
Industrial Industry Analysis ► (edit / improve) The industrial industry includes companies whose sales originate from the manufacturing of materials into finished goods and services. Valuation: Based on WikiWealth's Wall Street analysis, this industry is a Hold, with slightly positive potential. The Main Street analysis says a Hold with SWOT strengths much great than weaknesses and SWOT opportunities less than threats. Trade: The following countries derive much of their income from the industrial sector of the economy: Brazil, Venezuela, USA, Belgium, the EU, Germany, France, China, Hong Kong and Japan. Main industrial commodities include the following: aluminum, copper, lead, nickel, palladium, silicon, steel, tin, and zinc. Trading Strategy: The industrial industry tends to be sensitive to economic cycles. Look for undervalued industrial investments during economic recessions when stock prices are low and sell industrial investments during the late stages of a bull markets when stock prices are high. The global economy is currently in a recession, therefore, it is the perfect time to purchase industrial investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
Investment Impacts (help)
Brazil Country Analysis ► (edit / improve) Brazil (BRL) is a member of the BRIC nations and has the largest economy in South America. Brazil has significant agricultural and industrial industries. Currency: the Brazilian currency has the potential to increase in value especially versus many developed market currencies. Brazil has high interest rates, low inflation and positive investment flow potential. Investor Survey: the economic environment is moderate, with low government transparency and high SWOT opportunities. Trade: China, Netherlands, Argentina and USA are the top trading partners. Brazil has significant export capabilities in agriculture and industrial products such as ethanol, sugar, oats, pork, corn, soybean and airplanes. Commodity: A favorable growth environment and car fuel demand create a significant and growing industry for Ethanol. SWOT Analysis: Ethanol is the leading US strength, while education, crime and income inequality are major weaknesses. A recent oil discovery is a major opportunity for Brazil, while the threat of HIV could slow growth and burden the health system. Trading Strategy: An undervalued currency, moderate investment flow potential and positive SWOT opportunities help Brazil, but fundamental weaknesses and government issues hold back Brazil’s potential.
Venezuela Country Analysis ► (edit / improve) Venezuela (VEF) has a mixed economy dominated by the petroleum sector, but with a moderate service and industrial base to slightly diversify economic growth. Currency: Venezuela’s currency is correctly valued on a global basis. Investor Survey: the economic environment is very unfavorable for long term economic growth due to low scores on economic freedom, diversity, and the SWOT analysis. Trade: China, Netherlands, and the US are the top trading partners, while the leading export is petroleum and coca. Coca is especially damaging, because it leads to crime and corruption. Commodity: Venezuela produces a significant amount of crude oil and coca mostly as an export. SWOT Analysis: The leading strength is Venezuela’s participation in OPEC, the international oil cartel. Government nationalizations, crime and corruption are major SWOT weaknesses. Trading Strategy: A correctly valued currency, low investment flow potential and very unfavorable business environment lead to a strongly negative outlook for Venezuela.
USA Country Analysis ► (edit / improve) The United States (US) has a highly productive, capitalist economy and is the largest and most diverse market in the world. Currency: the US dollar (USD) has the potential to increase in value especially versus the Australian and Canadian dollar because of the significant potential of undervalued companies. Investor Survey: the economic environment is very favorable for long term economic growth due to high scores on economic freedom and economic diversity. Trade: China, Japan, Mexico, and Canada are the top US trading partners, while the leading export and import are electrical machinery and vehicles, respectively. Commodity: The US produces a significant amount of coal and wheat for use at home and as an export. However, the US consumes a larger amount of oil, which contributes to their trade deficit. SWOT Analysis: The leading US strength is its entrepreneurial culture, while the main weakness is high health care cost. Energy independence has the opportunity to propel growth, while the major threat is the housing crisis, which will lower growth. Trading Strategy: An undervalued currency, high investment flow potential and favorable business environment lead to a positive outlook for US investments, which will also benefit from positive international actions.
Belgium Country Analysis ► (edit / improve) Belgium (EUR), part of the European Union, is a capitalist economy with a large service industry. Currency: Belgium is part of the Euro economic zone, whose currency has the potential to decrease in value on a global scale per the purchase price parity. Investor Survey: the economic environment is very favorable for long term economic growth, due to high scores on economic diversity and SWOT strengths. Trade: Finland, UK, Netherlands, France and Germany are the top trading partners. Belgium’s economy has a strong focus on the industrial sector. Commodity: Belgium does a large trade in diamonds. SWOT Analysis: European membership is Belgium’s most significant SWOT strength. Trading Strategy: An overvalued currency, low investment flow potential, but very favorable business environment leads to a neutral outlook for Belgium's investments.
European Union Country Analysis ► (edit / improve) The European Union (EUR) is a single market and currency group of countries, which creates one of the largest and most diverse markets in the world. Currency: The EUR is fairly valued versus other major global currencies. They have a positive investment flow and negative purchase price parity. Investor Survey: the economic environment is favorable for long term economic growth due to favorable scores on government transparency and SWOT opportunities. Trade: Belgium, Hungary, China, Saudi Arabia, Russia, China, Norway and Japan are the top trading partners. Commodity: The EU does not produce many commodities, but they import many energy-related commodities from Russia and the Middle East. SWOT Analysis: The leading EU strength is their single currency and internal market, while the main weaknesses include a declining birth rate, labor restrictions and language barriers. New energy proposals have the opportunity to propel growth; there were no major threats to report. Trading Strategy: A moderately-valued currency, high investment flow potential, but low purchase price potential and negative SWOT weaknesses lead to a slightly negative outlook for EU investments.
Germany Country Analysis ► (edit / improve) Germany (EUR) is the largest economy in Europe and relies on a strong and sophisticated industrial base to drive their exports. Currency: Germany is part of the Euro economic zone, whose currency has the potential to decrease in value on a global scale per the purchase price parity. Investor Survey: Germany’s economic environment is favorable for long term economic growth due to high scores on economic freedom, economic diversity, and government transparency. Trade: The UK, France, and USA are the top export partners, while the leading export industry is industrial goods. Commodity: Germany imports many commodities to feed its industrial base: crude oil, coal, copper, aluminum, lead, zinc, and natural gas. SWOT Analysis: The leading German strength is their engineering expertise, while the main weakness is their declining birth rate. Trading Strategy: An overvalued currency, moderate investment flow potential and favorable business environment lead to a slightly positive outlook for German investments.
France Country Analysis ► (edit / improve) France (EUR) has a capitalist economy with significant government intervention. Currency: France is part of the Euro economic zone, whose currency has the potential to decrease in value on a global scale per the purchase price parity. Investor Survey: France’s the economic environment is moderate for long term economic growth due to high scores on government transparency, but low scores on economic diversity. Trade: Finland, Belgium, the UK, Germany, and Italy are the top export partners, while a significant import is uranium. Commodity: Uranium powers France’s nuclear energy industry. SWOT Analysis: The leading French strength is their nuclear energy experience, while the main weakness is a declining birth rate. Trading Strategy: An overvalued currency, moderate investment flow potential and moderate business environment lead to a slightly negative outlook for French investments.
China Country Analysis ► (edit / improve) China (CNY) is a fast growing communist country with the largest population in the world. Currency: China’s currency is moderately undervalued. Purchase price parity shows that China’s currency is approximately 40% undervalued, however, the other three valuation approaches show that China is fairly valued. Investor Survey: China’s economic environment is very unfavorable for long term economic growth due to the lack of economic freedom, government transparency, and the SWOT analysis. Trade: Indonesia, Pakistan, Norway, Singapore, Europe, the US are the top export partners, while the leading industry is industrial goods, usually for export. Commodity: China produces a significant amount of coal for use at home. The use of coal to provide energy leads to other health related problems. SWOT Analysis: The leading Chinese strength is their cheap labor, while the main weaknesses are political risk and corruption. Renewable energy has the opportunity to propel growth, while general pollution and an aging population could slow growth rates. Trading Strategy: An undervalued currency, average investment flow potential and an unfavorable business environment leads to a neutral outlook for Chinese investments.
Hong Kong Country Analysis ► (edit / improve) Hong Kong (HKD) has a highly productive, capitalist economy that relies on its trade network and proximity to China. Currency: The Hong Kong dollar is fairly valued with low investment flows and high potential according to the purchase price parity. Investor Survey: Hong Kong’s economic environment is very favorable for long term economic growth due to high scores on economic freedom, government transparency, economic diversity, and the SWOT analysis. Trade: Indonesia, China, Singapore, Korea, and the USA are the top export partners, while the leading industry is industrial goods. Commodity: Hong Kong specializes in the trade of goods. SWOT Analysis: The leading HK strength is their status as a gateway to china, while the main weakness is their lack of arable land. Liquefied natural gas has the opportunity to propel growth, while the risk of a pandemic may lower growth. Trading Strategy: A moderately priced currency, low investment flow potential, but very favorable business environment leads to a positive outlook for Hong Kong investments.
Japan Country Analysis ► (edit / improve) Japan (JPY), the second largest economy in the world, has an industrial, export oriented economy that benefits from its relationship with the USA and proximity to China. Currency: Japan’s currency (the Yen) is overvalued according to investment flow potential, the purchase price parity, and the interest rate parity. Investor Survey: Japan’s economic environment is moderately favorable for long term economic growth due to high scores on economic freedom and government transparency, but low scores on the SWOT Analysis. Trade: Indonesia, China, Singapore, the EU, Korea, and the US are Japan’s top export partners, while the leading industry is industrial manufacturing. Commodity: Japan imports many products because of its lack of arable land and energy resources. SWOT Analysis: The leading Japanese strength is their education system, while the main weakness is a declining birth rate. A major Japanese threat is the continuation of zombie companies. Trading Strategy: An overvalued currency, low investment flow potential and moderate business environment leads to a negative outlook for Japanese investments.
Greece Country Analysis ► (edit / improve) Greece (EUR) has large agriculture, tourism and service sectors. Currency: Greece is part of the Euro economic zone, whose currency has the potential to decrease in value on a global scale per the purchase price parity. However, Greece has positive investment flow potential. Investor Survey: Greece’s economic environment is favorable for long term economic growth due to many SWOT strengths and opportunities. Trade: Finland, the UK, Germany, the USA, and Italy are the top export partners, while the service industry is a fast growth sector of the economy. Commodity: Greece’s industrial sector transports large amounts of fuel around the world. SWOT Analysis: The leading Greek strength is their growing tourism industry, while no major weaknesses were discovered. IT development has the opportunity to propel growth, while no major threats were discovered. Trading Strategy: A moderately-valued currency, high investment flow potential and average business environment lead to a slightly positive outlook for Greek investments.
Commodity Investment Impact
Aluminum Commodity Analysis ► (edit / improve) Aluminum is one of the most widely used metals and global production is second only to iron. Commodity: Aluminum is rated a Hold. Aluminum demanders and suppliers have potential to increase in value. Investor Survey: Aluminum’s long term growth potential is moderately favorable due to high scores on the SWOT analysis. SWOT Analysis: Strength: Aluminum has a vast number of uses, which help it to maintain long term demand. Opportunity to grow: Aluminum is completely recyclable, which will help as consumers become more environmentally active; Threats to growth: Other materials with similar properties like carbon fiber could be a significant threat to aluminum. Trading Strategy: The commodity analysis hold rating indicates that aluminum should stay about the same over the short term, whereas a moderately favorable investor survey means aluminum may increase in price over the long term.
Copper Commodity Analysis ► (edit / improve) Copper is a widely used decorative and anti-bacterial compound. Copper is also a good conductor of heat and electricity. Commodity: Copper is rated a Hold. Both copper demanders and suppliers have potential to increase in value. Investor Survey: Copper’s long term growth potential is very favorable due to high scores on difficulty to expand short term supply, sensitivity to price changes and the SWOT analysis. SWOT Analysis: Strength: Copper has a limited supply and a wide array of uses. Opportunity to grow: Copper’s self cleaning properties have the potential to increase growth in the future; Threats to growth: Copper’s diminishing supply could hurt growth as substitutes become more appealing. Trading Strategy: The commodity analysis hold rating indicates that copper should stay roughly the same over the short term, whereas a very favorable investor survey means copper may increase in price over the long term.
Lead Commodity Analysis ► (edit / improve) Lead has a variety of uses, from building construction to bullets. Commodity: Lead is rated a Buy. Lead demanders have average potential to increase in value, while lead suppliers have very low potential to increase in value. Investor Survey: Lead’s long term growth potential is low due to low scores on lack of good substitutes and SWOT threats. SWOT Analysis: Strength: Lead has a limited supply; Weakness: lead poisoning is a significant threat to the use of lead. Threats to growth: lead is difficult to dispose of and it is harmful to the environment. Trading Strategy: The commodity analysis buy rating indicates that lead should increase in price over the short term, whereas a very low investor survey means lead should decrease in price over the long term.
Nickel Commodity Analysis ► (edit / improve) Nickel is corrosion-resistant, so it has many uses in the plating of coins and magnets. Commodity: Nickel is rated a Hold, because both Nickel demanders and suppliers have a high potential to increase in value. Investor Survey: Nickel’s long term growth potential is moderately favorable due to high scores on the SWOT analysis. SWOT Analysis: Strength: Nickel helps prevent contamination when used with steel. Opportunity to grow: nickel’s demand could increase as emerging markets continue to grow; Threats to growth: high exposure could lead to health risk. Trading Strategy: the commodity analysis Hold rating indicates that nickel should stay the same price over the short term. An average investor survey means nickel should stay the same in price over the long term.
Palladium Commodity Analysis ► (edit / improve) Palladium has many unique characteristics such as a low melting point and density. Palladium is mostly used in jewelry and dentistry. Commodity: Palladium is rated a Hold, because both demanders and suppliers have low potential to increase in value. Investor Survey: Palladium’s long term growth potential is very favorable due to high scores in the SWOT analysis. SWOT Analysis: Strength: Palladium has a limited supply and unique properties; Weakness: limited sources of supply can hurt growth of palladium if the price becomes too high. Opportunity to grow: jewelry growth and demand could increase the demand for palladium, while generally poor market conditions could lower growth. Trading Strategy: The commodity analysis hold rating indicates that palladium should stay roughly the same over the short term, whereas a favorable investor survey means palladium may increase in price over the long term.
Silicon Commodity Analysis ► (edit / improve) Silicon is an important component of most semiconductor devices, which are mostly used for technology applications. Commodity Analysis: Silicon is rated a Sell, because demanders of silicon have a low potential value. Investor Survey: Silicon’s long term growth potential is moderately unfavorable due to low scores on difficulty to expand supply. SWOT Analysis: Opportunity to grow: silicon’s use in the growing construction and technology industry could help future material growth; Threats to growth: silicon may be harmful to miners. Trading Strategy: The commodity analysis sell rating indicates that silicon should decrease in price over the short term, whereas a moderately unfavorable investor survey means silicon may decrease in price over the long term.
Steel Commodity Analysis ► (edit / improve) Steel is a mass produced material consisting mostly of iron. Steel is used in buildings, infrastructure, automobiles and other diverse applications. Commodity Analysis: Steel is rated a Hold. Steel demanders are fairly valued, so they may not increase in price, while steel suppliers have a higher potential to increase in value. Investor Survey: Steel’s long term growth potential is moderately favorable due to high scores on lack of good substitutes and SWOT strengths. SWOT Analysis: Strength: Steel is recyclable, which greatly enhances its environmental appeal and durability as a material. Opportunity to grow: steel’s widespread use could aid growth as the world economy grows; Threats to growth: plastic is becoming a greater threat to steel as plastics become cheaper and more durable. Trading Strategy: The commodity analysis hold rating indicates that steel should stay the same price over the short term, whereas a moderately favorable investor survey means steel may increase in price over the long term.
Tin Commodity Analysis ► (edit / improve) Tin is most often used as a corrosion protective coating for other metals. Commodity Analysis: Tin is rated a Hold. WikiWealth did not have a robust enough sample of demanders to gauge potential. Tin suppliers have average potential to increase in value. Investor Survey: Tin’s long term growth potential is moderately unfavorable due to low scores on difficulty to expand supply and substitute products. SWOT Analysis: Strength: Tin has moderate health benefits. Trading Strategy: The commodity analysis hold rating indicates that tin should stay the same price over the short term, whereas a moderately unfavorable investor survey means tin may decrease in price over the long term.
Zinc Commodity Analysis ► (edit / improve) Zinc is mainly used as an anti-corrosion coating on iron and steel. Commodity Analysis: Zinc is rated a Buy. Zinc demanders have a high potential to increase in value, while zinc suppliers have low potential to increase in value. Investor Survey: Zinc’s long term growth potential is very favorable due to high scores on the SWOT analysis. SWOT Analysis: Strength: zinc has anti-corrosion properties, which will benefit the growth of zinc as emerging countries continue to urbanize. Opportunity to grow: Zinc’s recyclable, non-toxic properties could benefit its growth as environmental concerns increase. Trading Strategy: The commodity analysis buy rating indicates that zinc should increase in price over the short term, while a very favorable investor survey means zinc should increase in the long term.
Industry Investment Impact
Material Industry Analysis ► (edit / improve) The materials industry includes companies whose sales originate from the mining, acquisition and sale of physical substances for manufacturing-related purposes. Valuation: Based on WikiWealth's Wall Street analysis, this industry is a Hold. The Main Street analysis also says Hold, with SWOT strengths much great than weaknesses and SWOT opportunities less than threats. Trade: Some of the main trade hubs include Canada, Chile, Poland, Australia, Indonesia, Pakistan, Malaysia, and South Africa, while the main material commodities include aluminum, copper, lead, nickel, palladium, silicon, steel, tin, and zinc. Trading Strategy: The materials industry tends to be sensitive to economic cycles. Look for undervalued material investments during economic recessions when stock prices are low and sell material investments during the late stages of a bull markets when stock prices are high. Material stocks quickly increase at the conclusion of a recession, because materials are the primary input for the industrial sector. The global economy is currently in a recession, therefore, it is the perfect time to purchase material investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
- Materials prices have a major impact on industrial costs.
