February 25, 2022, 3:48 pm EST
Booming Industry During Inflation, War, and Infrastructure Development
If you are asked the question, “What will be the booming industry during Inflation, war, and infrastructure development?”, what is your answer?
Our answer is the steel industry which might be the answer that the stock market provided today: MT +11%, CLF +11%, X +10%, STLD +9%, NUE +8%, ATI +7%, RS +6%.
The rate hike is coming in March in order for Fed to deal with 40-year-high inflation. Confrontation and fighting in Kyiv are intensified that could bring more demand on steel for weapons, bombs, tanks, for the future both in the US and the world. Finally, Infrastructure projects in the US are going to start soon to upgrade the bridges, roads, and many out-of-date facilities that would consume a significant amount of steel.
Most likely, many portfolio managers are thinking about the same thing so aggressive buying patterns are revealed for the stocks mentioned above. Please check out the chart of NUE where breakout occurred today for the fresh 52-week high.