Brad DeLong notes that the last sector to recover from a recession tends to be those who manufacture the equipment needed to produce durable goods.

One firm in particular–Applied Materials–is the preeminent manufacturer of the equipment needed to make high-tech capital goods. And so today investing in Applied Materials is, as the Financial Times writes, a clean and highly leveraged bet on the strength of America’s current anemic business-cycle recovery–a bet only for those with “iron nerves.”

While that firm has yet to see a jump in orders, it has seen a 50 percent jump in its stock since February, according to the Financial Times. Whether this is a sign of faith by savvy investors or mere speculation is unclear at this juncture, certainly to me.

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James Joyner
About James Joyner
James Joyner is Professor and Department Head of Security Studies at Marine Corps University's Command and Staff College. He's a former Army officer and Desert Storm veteran. Views expressed here are his own. Follow James on Twitter @DrJJoyner.


  1. John says:

    Let’s hope it’s a good sign. As I’ve said before, I’d rather have a damn good economy than an election issue any day of the week.