Continuing our countdown of the top 10 bull markets (read Part 1)...
Sixth? Home and home-related. I know it's been disliked since $12, but my favorite homebuilder because of its incredibly good California holdings, KB Home (KBH - Get Report) , shows no signs of quitting. It's leading Toll (TOL - Get Report) , Lennar (LEN - Get Report) , Horton (DHI - Get Report) and Pulte (PHM - Get Report) even as this group is supposed to be selling off into a pending rate hike. At least it always has before.
Perhaps because, as the brilliant Home Depot (HD - Get Report) CFO Carole Tome mentioned on her conference call, a quarter point is $40 more dollars a month -- hardly enough to quell a purchase of a $700,000 Toll Brothers home. I think you can only delay the purchase of a home for so long, and the delays have now been a decade long.
Anything that makes a home more valuable, anything that can be capitalized and not expensed, so to speak, has had downfield running all the way, led by Stanley Black & Decker (SWK - Get Report) but including Masco (MAS - Get Report) and Sherwin Williams (SHW - Get Report) look incredibly strong. But their moves pale in comparison to those leaps of Home Depot and Lowe's (LOW - Get Report) . You know a theme is powerful when both of those companies put up phenomenal earnings. The tide seems so high, that you almost expect Sears Holdings (SHLD) to participate. My thinking? If it isn't participating now, then it ain't ever going to do so.
Seventh: United Parcel Service (UPS - Get Report) doesn't represent its group well. I find the freight forwarders and logistics and truckers all doing so well here, with CH Robinson Worldwide (CHRW - Get Report) , XPO Logistics (XPO - Get Report) and Expeditors (EXPD - Get Report) being the standouts. But you could throw darts at this group, and as long as you don't hit UPS, you are in clover.
The eighth bull? The airlines. Maybe Warren Buffett started the party, but this group comes in only for seconds, it seems, and then it is off to the races again for whatever reason, the most recent being the deregulation against fare transparency that President Trump instituted Friday. Southwest (LUV - Get Report) remains the favorite.
Ninth? Let's call it travel and leisure, and let's include Carnival (CCL - Get Report) , Royal Caribbean (RCL - Get Report) , Priceline (PCLN) and Disney (DIS - Get Report) , although the latter's still well off its high. These are part of the experiential economy, the one where we Snap and Tweet and Instagram our way through joyous times and insist on sharing them with people who are less fortunate at that moment than we are.
Finally, because of the sharp decline at the longer end and a Kraft Heinz (KHC - Get Report) that is on the prowl, we've got a remarkable run in some of the old bond market equivalent and consumer product companies, like Clorox (CLX - Get Report) , Kimberly Clark (KMB - Get Report) , PepsiCo (PEP - Get Report) and Colgate (CL - Get Report) . Throw in the non-takeoverable Procter & Gamble (PG - Get Report) courtesy of pressure from Nelson Peltz, and you have a decent sized group. Oh, and if you really want to stretch the bounds? How about the consumer product company king, Apple, the largest company on earth and one that still sports no more than a 14x multiple?
What's conspicuously absent from the list? How about the oils, which are almost all rolling over save Pioneer PXD. We have been buying them for the trust as a counterplay to the rally. The hallmark of this market has been to buy the out-of-favor and don't get down about it. The rotation is coming. The retailers are so sickly that they redefine pain, as do the supermarkets, with standouts like Fossil (FOSL - Get Report) , L Brands (LB - Get Report) , GameStop (GME - Get Report) , Supervalu (SVU) , Kroger (KR - Get Report) and Whole Foods (WFM) . Amazon's (AMZN - Get Report) chart tells you where the money's going.
Finally, there's the higher-yielding stocks that don't seem to be able to back their yields with the goods -- here, I am thinking Frontier (FTR - Get Report) and Centurylink (CTL - Get Report) (as currently figured) but also some of the higher yielding real estate investment trusts that are linked to retail, which has become the kiss of death in this market. I don't know if it's worth it to be patient and wait for the next rotational bus to come around. It just might take too long, and it could be from a much lower level to bounce you out of there.
Yep, 10 powerful bull markets with no sign of flagging, and that's just the most visible ones. There are plenty of minis and one-offs in this tape. Let these serve as a reminder for when we have our next down days. These are the places you want to be.