One thing I have learned in my decades of investing is that very few sure bets present themselves in any given year -- except going with the current SEC champion against any Midwestern team for college football's BCS title at a neutral field. That said, every dog eventually has its day. Stocks and sectors that have underperformed for months or years can be the strongest performers in the months and years ahead. Good examples of this are banks and homebuilders. Both sectors were lousy investments for years but turned around in 2012 to be among the best market performers over the past 12 months.
The steel sector and the companies that supply the industry have underperformed the overall market significantly since late spring. Concerns about a slowdown of worldwide growth, poor pricing, overcapacity and a rough patch in the Chinese economy all contributed to a decline in the sector. Skies seem to be brightening, however, with rising prices and more certainty around demand from China. The sector has started to bounce back. Here are two cheap stocks that could perform well if the sector continues to rebound....362 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.