Details

<p>Foreword ix</p> <p>Preface xi</p> <p>Acknowledgments xv</p> <p><b>Part I: Getting Started in Industrials 1</b></p> <p><b>Chapter 1: Industrials Basics 3</b></p> <p>Industrials Basics 4</p> <p>Industrials Characteristics 7</p> <p>The Modern Production Process 14</p> <p><b>Chapter 2: History of Modern Manufacturing 21</b></p> <p>The Advancement of Trade and Investment 22</p> <p>The Rise of Asia and Changes in the Manufacturing Landscape 29</p> <p>The State of US Manufacturing 41</p> <p><b>Chapter 3: Industrials Sector Drivers 47</b></p> <p>Corporate Spending 48</p> <p>Government Spending 59</p> <p><b>Part II: Next Steps: Industrials Details 65</b></p> <p><b>Chapter 4: Industrials Sector Breakdown 67</b></p> <p>Global Industry Classification Standard (GICS) 67</p> <p>Global Industrials Benchmarks 69</p> <p>Capital Goods Industry Group 75</p> <p>Transportation 85</p> <p>Commercial & Professional Services 93</p> <p><b>Chapter 5: Staying Current: Tracking Sector Fundamentals 97</b></p> <p>What to Watch 97</p> <p>Corporate and Government Spending-Related Metrics 98</p> <p>Industry Specific Indicators 111</p> <p><b>Chapter 6: The Infrastructure Market 117</b></p> <p>A Very Big Market 118</p> <p>Infrastructure Investment Drivers 120</p> <p>Risks to Infrastructure Growth 123</p> <p>Participating in the Infrastructure Boom 125</p> <p><b>Part III: Thinking Like a Portfolio Manager 131</b></p> <p><b>Chapter 7: The Top-Down Method 133</b></p> <p>Investing Is a Science 133</p> <p>Einstein’s Brain and the Stock Market 134</p> <p>The Top-Down Method 136</p> <p>Top-Down Deconstructed 142</p> <p>Managing Against an Industrials Benchmark 149</p> <p><b>Chapter 8: Security Analysis 155</b></p> <p>Make Your Selection 156</p> <p>A Five-Step Process 157</p> <p>Important Questions to Ask 164</p> <p><b>Chapter 9: Allocating your “Capital Good” 171</b></p> <p>Strategy 1: Adding Value at the Industry Level 171</p> <p>Strategy 2: Adding Value at the Security Level 179</p> <p>Strategy 3: Industrials Sector Downturn 180</p> <p>How to Implement Your Strategy 180</p> <p>Appendix: Industrials Websites and Data Sources 183</p> <p>Notes 185</p> <p>Glossary 194</p> <p>About the Authors 197</p> <p>Index 198</p>

<p><b>MATT SCHRADER</b> is an Industrials analyst for Fisher Investments. He is also a contributing columnist for MarketMinder.com. Matt is a graduate of the University of California, San Diego. Originally from Marin County, California, he currently resides in San Francisco. <p><b>ANDREW S. TEUFEL</b> has been with Fisher Investments since 1995 where he currently serves as a Co-President and the Director of Research. Prior to joining Fisher Investments, he worked at Bear Stearns as a corporate finance analyst in its Global Technology Group. Andrew also instructs at many seminars and educational workshops throughout the United States and United Kingdom, and lectures at the Haas School of Business at UC Berkeley. He is also the Editor in Chief of MarketMinder.com. Andrew is a graduate of UC Berkeley.

<ul> <li>An in-depth look at the global Industrials sector investment universe including conglomerates, machinery producers, electrical equipment manufacturers, defense contractors, railroads, and more</li> <li>Tips and tools for security analysis and portfolio management</li> <li>A useful guide for investing in any market condition</li> </ul> <p>The<i> Fisher Investments On</i> series is designed to provide individual investors, aspiring investment professionals, and students the tools necessary to understand and analyze investment opportunities—primarily for investing in global stocks. Each guide is an easily accessible primer to economic sectors, regions, or other components of the global stock market. While this guide specifically focuses on Industrials, the basic investment methodology is applicable for analyzing any global sector, regardless of the current macroeconomic environment. <p>Following a top-down approach to investing, <i>Fisher Investments on Industrials</i> can help you make more informed decisions, specifically within the Industrials sector. It skillfully addresses how to determine optimal times to invest in Industrials stocks and which industries and sub-industries have the potential to perform well in various environments. The global Industrials sector is complex, covering multiple sub-industries and countries—each with their own unique characteristics. Using the framework found here, you can discover how to identify these differences, spot opportunities, and avoid major pitfalls. <p><b>Divided into three comprehensive parts—Getting Started, Industrials Details, and Thinking Like a Portfolio Manager—<i>Fisher Investments on Industrials:</i></b> <ul> <li>Discusses Industrials' main drivers—government and corporate spending—and explains how to capitalize on a wide array of macro conditions and industry-specific events</li> <li>Breaks down Industrials by its three industry groups—Capital Goods, Transportation, and Commercial Services & Supplies—and walks you through their related industries and sub-industries</li> <li>Delves into top-down investment methodology as well as individual security analysis</li> <li>Provides a detailed account of global infrastructure markets—from ways to participate in the boom to the risks behind investment</li> <li>Covers the major components of the global Industrials investment universe—from building products and machinery to airfreight and electrical equipment</li> <li>Outlines a five-step process to help differentiate firms in this field—designed to help you identify ones with the greatest probability of outperforming</li> </ul> <p>Filled with in-depth insights and expert advice, <i>Fisher Investments on Industrials</i> provides a framework for understanding this sector and its industries, to help you make better investment decisions—now and in the future. With this book as your guide, you can gain a global perspective of the Industrials sector and discover strategies to help achieve your investing goals.

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