The (DJIA) is back on an upward trajectory thanks to the reopening of the economy. And because the Federal Reserve has hinted that it could tighten its monetary policy if the economy continues to show improvement, a concern over inflation is moderating. Considering this, we think outperforming DJIA stocks Cisco (CSCO), Caterpillar Inc. (NYSE:), and Dow Inc. (DOW) are uniquely positioned to deliver solid returns in the coming months. Let’s discuss.The Dow Jones Industrial Average (DJIA) has gained 11.4% year-to-date because investors are growing increasingly confident that the nascent economic recovery is solid. In fact, the Federal Reserve officials said during their April meeting that they would discuss tightening feds monetary policy if the economy continues to make rapid progress.
Also, the fed’s anticipation that inflation will ease as the year progresses is expected to be a major support for DJIA stocks.
As the economy continues to make significant progress, we believe that DJIA stocks Cisco Systems, Inc. (NASDAQ:), Caterpillar Inc. (CAT) and Dow Inc. (DOW), which have outperformed the broader markets so far this year, will continue rallying.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.