Caterpillar's Results Leading Indicator of Strong Economic Growth

Caterpillar is the litmus test for the global economy, and business is booming
Caterpillar, the world’s biggest maker of construction and mining equipment, reported a 25% spike in quarterly revenue yesterday — and US markets went through the roof.
The DOW Jones bumped up 168 points, and the S&P 500 hit its highest level in a decade.
Because, as it turns out, it’s not just companies like Google making big splashes in the global economy — 92-year-old construction companies like Caterpillar are a great indicator of global market strength.
Surprised? So were we

See, unlike some of the huge tech companies making headlines these days, a boom in the construction market is an indicator that more housing, companies, and infrastructure are going up — all hallmarks of a healthy economy.
And it’s not just US markets seeing an uptick in yellow tape — Caterpillar’s construction sales jumped 22% in the Middle East, 24% in Latin America, and 31% in the Asia Pacific region (thanks to a growing market in China).
And Q4’s showing no signs of slowing

Caterpillar also bumped up its end-of-year predictions, forecasting an overall 20% increase in revenues for its construction business.
Excellent news for pretty much everyone, because, as Bloomberg puts it: “As Caterpillar Inc. goes, so goes the world economy.”

---

Bodes well for Aconex! If I were investing in any stable growth company now, it would be Aconex. I no longer see it as a medium risk investment, but now, a low risk investment.