Our Outlook for Basic Materials Stocks
Basic materials have fallen down the rabbit hole.
Basic materials have fallen down the rabbit hole, and we are now in Wonderland. China can no longer be easily relied upon to fuel heady demand growth for commodities, while U.S. housing activity is picking up in earnest and U.S. petrochemical manufacturers are globally competitive, thanks to cheap natural gas. Companies that spent the last half decade touting their exposure to China downplayed their investments in the Middle Kingdom during first-quarter earnings calls.
Elizabeth Collins has a position in the following securities mentioned above: WY, MT, VALE. Find out about Morningstar’s editorial policies.