Login to your account

Lost your password?

These stocks are going to keep rising even if the market falls

US Steel (X)

Well, due to late breaking news, US Steel is no longer on an upward tear as the rest of these picks are, but instead, its giving buyers a second chance. By the end of the day last Thursday, President Trump had made certain that no one anywhere knew exactly what his position was regarding his recently enacted steel and aluminum tariffs. When the tariffs were first announced, Alcoa, the nation’s biggest aluminum maker, did not like the tariffs as they complicated things by including Canada, where many of Alcoa’s factories are located. I said at the time that Trump would likely reverse himself. (If American aluminum companies don’t like the tariff, who exactly is supposed to?) That’s why I think the street over-reacted to his vacillations on Thursday by selling shares of X, which fell all the way back to its pre-tariff levels. So why is the president vacillating as to whether he plans to enforce the tariffs rigidly or allow many exemptions? The guess here is that it’s because he plans to do the former with regard to steel and the latter with regard to aluminum. That makes US Steel a screaming buy here.

X

Chart courtesy of www.stockcharts.com

Symbols: , , , ,

Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.