The Truth Behind Election-Year Jobs Talk

As we all know, it's an election year. So everyone is talking about jobs. And on both sides of the aisle, politicians have plans to fix manufacturing. [Chaikin PowerFeed]( The Truth Behind Election-Year Jobs Talk By Joe Austin, senior analyst, Chaikin Analytics As we all know, it's an election year. So everyone is talking about jobs. And on both sides of the aisle, politicians have plans to fix manufacturing. That's because manufacturing jobs occupy a special place within the American psyche... According to a 2017 study by consulting firm Deloitte, 83% of Americans believe that manufacturing is a key part of our economic prosperity. Eight-one percent think that it's important to maintaining our standard of living. And 62% believe it's important to our national security. There are few things that we all agree on like this. So no wonder politicians take note. However, manufacturing employment peaked in 1979 at nearly 20 million workers. And as you can see in the chart below, it has declined heavily since then... Based on that, it's hard to say if either side has better ideas. After all, we've been through eight presidents since the peak in manufacturing employment. And yet, there are powerful signs that "made in America" is coming back. And it has nothing to do with politics... Recommended Links: [Porter Warned Us – Did You Listen?]( The U.S. government spent a quarter of a trillion dollars it didn't have in July... then almost a half a trillion it didn't have in August. Meanwhile, core CPI inflation is now heading higher for the first time in a year and a half. As MarketWise founder Porter Stansberry says, "This madness will not end well." See how he thinks you should protect your wealth today, [right here](. [Gold Is SOARING – Here's What You Need to Do]( Everything is lining up perfectly for a historic gold bull run. One gold expert says he has found the best way to get in, for just $6. [Click here for full details](. The manufacturing sector contributes nearly $2.4 trillion annually to our economy. It makes up about 11% of U.S. GDP. We all like manufacturing because it has the highest "multiplier effect" of any sector. Like a pebble in a pond, there's a ripple effect... A dollar spent in manufacturing means more dollars spent elsewhere – like on materials, transportation, construction, and even retail. For decades, globalization took its toll on the U.S. manufacturing base. As consumers, we benefitted from this with cheaper prices. But factories closed. And across the country, folks lost jobs. Then came the pandemic... then the war in Ukraine... then the war in the Middle East. Those global supply chains didn't look so reliable anymore. It didn't matter if the goods cost less... You couldn't get them if you wanted to. That disruption obviously caused a lot of problems. And it caught the attention of CEOs. They started thinking about bringing production back to the U.S. That was the birth of "reshoring." According to Bank of America (BAC), by 2023, reshoring became a hot topic in earnings calls for companies in the S&P 500 Index. Mentions of it more than doubled versus the previous year. That was higher growth than mentions of AI. But the real proof is that corporate America is putting its money where its mouth is. Take a look at the chart below... Since January 2020, U.S. manufacturing spending has tripled. We're also seeing evidence that all this spending is starting to pay off... A recent survey by software company Medius showed that 94% of manufacturers who started reshoring reported positive outcomes. Meanwhile, 23% thought they were getting better value out of it. And they felt it made their supply chains more secure. More importantly, 93% said they would increase the pace of their reshoring over the next two years. So when it comes to putting money to work in this trend, a great place to start is the Industrial Select Sector SPDR Fund (XLI). As the name implies, it's an exchange-traded fund ("ETF") that holds a basket of companies in the industrial sector. Right now, the Power Gauge gives XLI a "very bullish" rating. The fund is also up about 22% this year. That's roughly in line with the S&P 500. Considering there's no "Magnificent Seven" of tech market darlings in XLI, that's remarkable performance. Digging deeper, XLI holds 76 stocks with ratings in the Power Gauge. Right now, 19 of them are "bullish" or better. Forty-eight are "neutral." And only nine are "bearish" or worse. Because of that, it's hard to just blindly buy the ETF. But with help from the Power Gauge, it's a treasure trove for stock pickers. That's because the industries within the index are so diverse. Here's a breakdown... In short, there's plenty of good fishing in XLI. And with the Power Gauge helping us out, we can find the right ways to play this trend. So let the politicians talk all they want. They'll always say they have a plan to fix our problems – no matter which side of the aisle. But the Power Gauge consistently has better ideas. And I have my eye on manufacturing stocks today. Good investing, Joe Austin Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.76% 11 17 2 S&P 500 -0.16% 156 278 59 Nasdaq +0.19% 21 69 10 Small Caps -1.57% 537 1025 358 Bonds -1.75% — According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks are Bullish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Utilities +1.76% Financial +0.92% Materials +0.43% Discretionary +0.26% Real Estate +0.21% Communication +0.02% Industrials -0.34% Staples -0.49% Information Technology -0.78% Health Care -2.2% Energy -2.91% * * * * Industry Focus Regional Banking Services 74 66 1 Over the past 6 months, the Regional Banking subsector (KRE) has outperformed the S&P 500 by +3.36%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #4 of 21 subsectors. Top Stocks [rating] CCB Coastal Financial Co [rating] MCB Metropolitan Bank Ho [rating] CNOB ConnectOne Bancorp, * * * * Top Movers Gainers [rating] KVUE +5.52% [rating] NVDA +4.12% [rating] BA +3.11% [rating] EXPE +2.23% [rating] LULU +2.1% Losers [rating] BLDR -5.2% [rating] CI -4.69% [rating] LEN -4.39% [rating] DHI -4.26% [rating] PSA -3.98% * * * * Earnings Report Reporting Today Rating Before Open After Close IVZ, MMM, VZ DGX, GPC, NSC BKR No earnings reporting today. Earnings Surprises [rating] ARE Alexandria Real Estate Equities, Inc. Q3 $0.87 Beat by $0.10 [rating] NUE Nucor Corporation Q3 $1.49 Beat by $0.08 [rating] WRB W. R. Berkley Corporation Q3 $0.93 Beat by $0.01 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. 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