3 Funds To Buy On Sturdy Factory Orders

Per the latest report from the Commerce Department, U.S. factory orders increased 0.6% in June. This rise follows back-to-back declines in two previous months. The metric came in below the consensus estimate of an increase of 0.7%.

Meanwhile, U.S. factory orders for large manufactured goods rose 2% in the month of June after two back-to-back declines. The metric was boosted by higher demand for aircrafts and cars. These reports shed light on the fact that America’s manufacturing sector is recovering fast and is set to grow further in the days to come.

Also, the U.S. economy just entered the longest phase of economic expansion in history. Under such broadly encouraging conditions, investing in mutual funds from the industrial sector seems prudent.

U.S. Factory Orders Get a Nudge

On Aug 2, the Commerce Department stated that U.S. factory orders for June rose to $$493.8 billion. Further, new orders for manufactured durable goods also increased 1.9% to $245.4 billion in the month. Orders for transportation equipment rose 3% in June to $88.7 billion, providing a major boost to overall growth.

Notably, the country’s GDP has expanded for the last 121 months on the trot. This period of sustained economic expansion, the longest in history, also surpassed the 120-month expansion from 1991 to 2001.

The current phase of expansion started in 2009 after the global financial crisis in 2008 led to a global depression which was the worst U.S. economic downturn since the Great Depression in the 1920s and ’30s.

3 Best Funds to Buy Now

Given such positives, we have highlighted three mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from such factors. Moreover, these funds have encouraging three and one-year returns. Additionally, the minimum initial investment is within $5000.

We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.

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