Mikkel Rosenvold
11 weeks ago

Analyst: This sector will benefit from US re-acceleration in March 2024

Read what sectors will benefit from a re-accelerating economy in March 2024
Shutterstock
Shutterstock

We are seeing more and more signs that the US economy is now re-accelerating after some trying years. US GDP forecasts are increasing month-by-month and the market consensus is that we are looking into a positive cyclical trend in coming quarters.

That has already been evident through a bull market in equity markets over the past quarters and has led to many investors taking huge returns on the US stock market. And it is also driving trends in global trade:

Expert Andreas Steno explains: "Global trade patterns are rebounding despite the substantial hiccups in the shipping lanes in the Red Sea. Emerging market export volumes are up almost 5% YoY and the trends have improved markedly over the past 3-6 months. Trade volumes will likely be partially distorted by the lack of shipping lanes through the Suez and Panama, but it will only work to emphasize the trend towards rising order books relative to inventories in the West."

But how to trade this? Andreas Steno predicts that US Materials will be a good investment as a consequence of rising order books and more activity in the US production sector. US Materials are currently very cheap comparatively and is historically a sector which performs extraordinarily well when the economy is re-accelerating - measured by the ISM Manufacturing index, which is currently in a very positive development.

Currently, US Materials have only risen 3% over the past 12 months, but should have short-term potential of up to 20-25% gain in coming months according to Andreas Steno of Steno Research. This can be expressed via buying US materials ETFs or metals and mining sector ETFs, which could both do well in coming months.

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Disclaimer

The information provided by this Site is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

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