Trump Trade: Steel Stocks are Back in the Spotlight

10:57 01/09/2019

Over the weekend, President Trump noted the border wall could be made of steel instead of concrete in an effort to reach a deal with Congress. In fact, he just asked Congress for $5.7 billion for a “234 miles of physical barrier” made of steel, reported The Washington Post. If that’s acceptable to Congress, it could provide a significant boost to steel stocks – especially once we consider a US-Mexico wall could require up to three million tons of steel, according to the American Iron and Steel Institute, as quoted by S&P Global Platts. While it’s a wait-and-see at this point, the move from concrete to steel could open a significant amount of potential opportunities in the sector. Plus, we can’t really ignore the country’s top steel stocks sitting at record lows. Once the trade war is over, and once we see potential progress on the wall, related stocks are likely to run higher. So, we want to begin buying them now, as others remain fearful. Three steel stocks to consider buying include: United States Steel (X), which plummeted from $47 to $17.50 in recent months Steel Dynamics (STLD), which fell from $50 to less than $29 AK Steel Holding (AKS), which was cut in half from $5 to less than $2.25 Nucor Corporation (NUE), which dropped from $68 to less than $50 You can even consider buying the popular steel ETF, the Van Eck Vectors Steel ETF (SLX).

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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