Durable goods orders—excluding transportation—grew for the third month in a row in July after significant contraction during the early days of the Covid-19 crisis, indicating a renewed openness from consumers to long-term capital investments. While much of the overall durable goods spike was thanks to new auto sales, the 2.4% ex-transportation bump is largely attributable to strong home sales as the suburban migration continues in an enduring work-from-home era trend. Meanwhile, as big tech carries the Nasdaq and S&P 500® Index to new record highs, it’s also reshaped the roster of the world’s largest companies. 15 years can make a heck of a difference! Does that massive growth mean it’s time to take another look at sector composition?
1. The surging housing market is showing a positive effect on durable goods…
![](https://blog.investbcm.com/hubfs/8-28%20The%20surging%20housing%20market%20is%20showing%20a%20positive%20effect%20on%20durable%20good-png.png)
Source: The Daily Shot, from 8/27/20
2. How big are the mega-caps?
![](https://blog.investbcm.com/hubfs/8-28%20How%20big%20are%20the%20mega-caps-png.png)
Source: Statista, As of 3/31/2005 and 8/20/2020
3. Perhaps it is time to split big tech into physical (chips, computers, etc.) and on-line tech and to merge energy and materials to make them relevant again…
![8.28 Perhaps it is time to split big tech into physical-1](https://blog.investbcm.com/hs-fs/hubfs/8.28%20Perhaps%20it%20is%20time%20to%20split%20big%20tech%20into%20physical-1.png?width=720&name=8.28%20Perhaps%20it%20is%20time%20to%20split%20big%20tech%20into%20physical-1.png)
Source: S&P Dow Jones, as of 8/24/2020
4. More evidence that wearing face masks can stymie Covid-19….
![](https://blog.investbcm.com/hubfs/8-28%20More%20evidence%20that%20wearing%20face%20masks%20can%20stymie%20Covid-19-----png.png)
Source: The Daily Shot, from 8/27/20
5. How has your State voted in the last ten elections?
![](https://blog.investbcm.com/hubfs/8-28%20How%20has%20your%20State%20voted%20in%20the%20last%20ten%20election-png-1.png)
Source: The Daily Shot, from 8/27/20
6. Worth a moment to ponder…
![](https://blog.investbcm.com/hubfs/8-28%20Worth%20a%20moment%20to%20ponder----png.png)
Source: The Daily Shot, from 8/27/20
7. Be careful what you click on!
![](https://blog.investbcm.com/hubfs/8-28%20Be%20careful%20of%20what%20you%20clique%20on-png.png)
Source: The Daily Shot, from 8/27/20