Stocks Hitting a Cyclical Sweet Spot

In the stock market, false starts can be gold mines.

Look no further than the chemicals sector. This sector, which took off in late 2001 on hopes that the economy was ready for a rebound, has sagged in 2002 on fears that the rebound is further away than expected.

But that's exactly what has created a buying opportunity in the sector. The pullback has taken a good part of the risk out of these stocks. When market sentiment swings again toward a belief in an economic rebound, these stocks are likely to recover all the ground they've lost, and then some. ...