On Thursday investors learned the rate of new home starts plunged by 14%. And a measure of manufacturing fell to its lowest level in six years.
Although that data suggests the threat of recession is looming, says Guy Adami, perhaps Fast Money has discovered a way for American investors to strike back. Join the empire! We’re talking business empires such as Honeywell or Danaher.
These huge companies typically supply the developing world with the tools to survive and grow.
For example, Danaher is experiencing demand for water treatment equipment in Beijing, ahead of the 2008 Olympics.
Danaher
Current P/E: 20
Average P/E*: 26
*Last 10 Years
Source: Bloomberg
I think Danaher is well insulated from a slowdown, says Guy Adami.
I also like this stock but it had been too expensive for me, adds Karen Finerman. But it might be attractive, soon.
Meanwhile, Honeywell is selling “emission reducing turbochargers” for autos in India.
Honeywell
Current P/E*: 17
Average: 17
*Last 10 Years
Source: Bloomberg
In 4 out of the last 6 recessions, HON has outperformed the overall market, says Guy Adami.