Sigh…
You know, I hate politics – I really do.
But unfortunately, being in the business I’m in, politics holds a heavy sway over how the market performs on a daily basis – so as much as I hate that I have to pay attention – ultimately, I have to do what I have to do.
Generally, these little happenings show up as blips on the radar – nothing big really – maybe a small spike or tiny drop here or there, but nothing major…
However, more recently, we’ve had a couple of major events that seemed to shake the market to its core.
One being the fact that the Chinese parliament went ahead and terminated term limits for its president – something that could have lasting effects on trade.
And…
We also had what could be the single biggest wealth-deciding decision the current administration has made yet.
After months of threatening – Trump went ahead and pulled the trigger on imposing tariffs on imports.
This is BIG.
The day the decision hit the wires we saw one of the biggest drops the market has experienced in almost a year and a half – with good reason – investors got real nervous about the future of global business.
Not only were things shaky that day…
They remained shaky for a few days after – but things began to settle down and it was business as usual on Wall Street.
So, the speculation of “if” the tariffs are going to happen is over. They happened. Now it’s time to accept the consequences or benefits and move forward.
That said…
I like to consider myself an optimist. I’m trying not to dwell on what the negatives could be – I’d rather just look at the opportunities that this situation is presenting.
The markets that are really looking forward to these tariffs are those connected to the steel industry.
One of Trump’s mantras going into the tariff decision was “If you don’t have steel, you don’t have a country.” I get the sentiment – he’s saying that steel is important because it’s the backbone of our infrastructure – and without it, he thinks the country could collapse.
While I don’t agree with his assessment, I do know that steel is an important commodity to a thriving economy – and with heavy tariffs coming for foreign steel – American metals could be the industry that walks away from this the biggest winner.
The tariffs could keep 5.6 million tons of steel in foreign countries – meaning there’s a LOT of slack that American companies will have to take up if we’re going to be able to tackle the infrastructure issues at hand.
U.S. Steel Corp. (X) is having a good year already – up almost 25% since January…
However, the stock seems to be a bit undervalued, considering the price of metals.
So when you take into account the fact that the stock could be undervalued and couple it with the fact that we’re going to need a lot more domestic steel to take the place of the foreign steel that won’t be coming to American soil…
We may have the makings of a perfect storm for profits for U.S. Steel Corp. – and early investors if they choose to act now.
Keeping everything in mind – we could see the stock double in price over the next 6 to 8 months.
Raising tariffs on imports could transform many different industries across the board – and singlehandedly buff the oxidation right out of the American rust belt.
While this impact isn’t certain – it’s a very exciting prospect for us to keep our eyes on.
Now, the GorillaTrades system doesn’t take politics into account – it can’t – it only deals in numbers. However, that doesn’t mean that the GT system doesn’t see the impact of these events.
How could it not?
Especially when the entire market dropped like a rock when the tariff decision was made…
And there are a few companies out there that are starting to feel the impact of that decision already – and they’re starting to show that impact through technical strength. All I’m waiting for is for them to hit all of the technical requirements of the GT trading matrix before I send out any recommendations to my subscribers.
If everything goes the way I expect it to – we could be in for an incredible spring.
Please consider subscribing sooner rather than later if you want to be a part of the fun!
Either way, do yourself a favor and look into metals and the industries they’re tied to…
They could be a smart bet going forward.
“Men admire the man who can organize their wishes and thoughts in stone and wood and steel and brass.” – Ralph Waldo Emerson