When Donald Trump won the U.S. election on November 8, he set off a whirlwind effect for markets of all kinds.
[ad#Google Adsense 336×280-IA]The S&P 500 and U.S. dollar are up 3% since then. Those are big moves in such a short period.
One particular area of the stock market has seen even bigger gains.
The Dow Jones U.S. Heavy Construction Index is up 21% since Election Day.
This index includes companies that build infrastructure, commercial and apartment buildings, and provide services to construction companies.
Trump says he’s going on an infrastructure spending spree when he becomes president. He plans to spur $1 trillion in investment in this space over the next 10 years. As he boasts on his official campaign website…
Our roads, bridges, airports, transit systems and ports will be the envy of the world and enhance the lives of all Americans.
For this to happen, Trump will rely on construction companies and service providers. He will also need a lot of one commodity in particular…
That commodity is copper.
Copper is the most effective conductor of electricity, behind the more expensive silver. Outside of power lines, most electrical wiring is done with copper.
It’s also the standard material for potable water and heating systems in most developed countries. And high-speed trains can use up to 16 metric tons of copper per mile of track.
Copper prices peaked in early 2011 and have steadily declined ever since due to oversupply.
However, Trump’s victory has revived the market. Since the election, copper has been on a tear… up 12%. No surprise, copper producers have enjoyed this run, too.
The companies on the table below fit the following criteria: 1) They’re heavily exposed to copper prices, 2) They are all liquid and regularly traded, and 3) They are relatively inexpensive compared with their industry competitors…
These companies have seen impressive upticks since Trump won the election. But if you’re looking to make a bet that a Trump presidency means higher copper prices, the names above are solid choices. Each one generates at least 65% of sales from copper.
It’s still too early to tell whether Trump’s promises will become reality. If they do, these companies’ share prices should continue much higher.
Good investing,
Brian Weepie
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Source: Growth Stock Wire