We been here before. It's always tough to feel conviction when the bears are showing their teeth... but... the U.S.economy is huge and it is recovering. The numbers are coming in with consistent improvement month over month. Yes, China will probably slow down. But it will still GROW and even if more modest it will be enough and develop an increasing trend over time. So with the world's largest economies of scale growing it is a given that steel production and demand should increase and ultimately increase exponentially. With current economic conditions domesticly improving and a slowdown in China, U.S. Steel (X;nyse) is still poised to be a clear winner in the pack. Don't be fooled by the panic. It's a buy! Being a verticly integrated steel company, U.S. Steel is less exposed to the trend of increasing prices for iron ore globally. I was a bull on Rio Tinto but have put that to the backburner since Australia has announced their new tax on profits for mining companies. With the recent pullback in the markets why would you buy Australian when you can buy American? Why take on more risk than necessary? I'm avoiding Australian miners and am keen on American companies and equities again. Panic has driven investors to run to bonds and gold, but I think U.S. equities are going to shine in the very short term when all the fear subsides and the investing public realizes there is no way to derail the recovery in the U.S. We are a freightliner, Greece is a small fishing boat. They better get out of the way! China may slowdown, but it is still going to have massive growth along with the U.S. We will lead the way and the rest of the world will follow. Last week's decline in equities is one of the best buying opportunities you will see in a long time. I've never liked gold but we are now going to see gold go above $1500; it's a given with the devaluation of global currencies. Interest rates are going no where short term. The worlds major economies are in recovery, the equity market is a bargain at these levels. The world is running back to the U.S. dollar because of fear that global currencies will devalue. When the fear subsides equities are going to rally. Don't be looking in the rear view mirror. Look ahead to Dow 10,750 in the very short term. Double dip? My a**!
Disclosure: AKS, X, BLK
Opportunity In Crises. X, U.S. Steel, AKS, AK Steel Corp. RTP, Rio Tinto
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