Given the quirky nature of the Industrials sector, there is ample scope for quality names to get mired with the unpopularity of the wider group and to be sold down unjustifiably. It appears that this is what has been happening over the last month in Industrials where concerns surrounding a slowdown in China and weak commodity prices have weighed on the sector. Such issues will certainly prove to be a headwind for the next few quarters, probably longer, but equally they do not dilute the long term investment case for a number of the quality UK Industrials.
With the persistently high volatility being seen at present it is likely that opportunities will continue to crop up within out-of-favour sectors. It is rare to be offered shares in great companies at reasonable prices – the next few months may well prove to be one of those occasions.
