The Infrastructure Rally Was Overdone

I have been saying throughout most of 2017 that I thought the huge post-election rally in infrastructure concerns was excessive. Expectations that the new administration would be able to quickly enact a huge bipartisan infrastructure bill, and that new funds would find their way into this sector quickly, just seemed unrealistic to me from the beginning. So the greater-than-50% rallies in names like United Rentals (URI) and Tutor Perini (TPC)   appear too much overdone.

Now that the strategy of the Trump administration becomes clearer, I am sticking with that original prognosis, and I think the sector is starting to break down a bit recently, with United and Caterpillar (CAT) both down some 5% so far in March. I would not be surprised if they continue to give up some of their post-election gains....366 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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