Ron DeLegge: World crude oil prices they are falling over 20% since mid 2014 and now there are a lot of happy consumers because of lower prices at the gas pump. So which industry sectors within the stock market are benefiting the most from the trend of lower energy prices? Hi there everybody! I am Ron DeLegge with ETF Guide. Let's connect the dot on this.
If you are running a manufacturing plant energy costs decides your employee payroll and one of your biggest inputs and if your energy cost just went down because of lower energy prices, guess what happens, your profitability goes up and that's one of the dynamics that's happening right now in the industrial sector.
Industrial sector SPDR EFT ticker symbol XLF, is an example of way fund with exposure to industrial stocks. It owns a collection of 64 blue chip industrials including Boeing, General Electric, Caterpillar, UPS, United Technologies and many others. Companies within these sector industrials are involved in aerospace and defense, building products, construction, and engineering, electrical equipment, machinery, air freight, rail and logistics along with conglomerates.
So checkout industrial stocks that profit from this new trend and low energy prices.