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Caterpillar’s layoffs and restructuring won’t be good enough to make the stock attractive for a long time. In fact, staying out of the whole sector is a smart short-term play.

Anyone looking for the poster child for the stock market’s bouts of fear, uncertainty and doubt need look no further than global mining, metals, engine products and diesel-electric locomotive engine maker, Caterpillar (NYSE: CAT).

After announcing a major structural transformation, including layoffs of about 10,000 employees over the next three years, and a reorganization plan aimed at saving $1.5 billion in costs, CAT stock sank 6% while touching lows not since 2010 in intra-day trading.

Let’s look at the long, slow and painful ride for CAT shareholders (and employees), and what’s to come for both the stock and it’s battered sector.

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