Got thinking this weekend about how should I plan my investment for the next 3-6 months. I do dabble in stocks for short term which are mostly based on news, intra-day calls from members on stockezy. But usually I am someone who likes to invest long term. This weekend over a cup of coffee made me think to visit some of the beaten down names in the commodity sector.
Copper, Steel, may be building materials such as Cement. Let’s Think Aloud together as to why this may be a good time to invest in companies like Tata Steel, ACC, Hindustan Copper, Sterlite, SesaGoa, Hindalco and other related companies.
Materials of any type which help build & re-build the backbone infrastructure of our country such as roads, bridges, railway lines, ports, electrical grids, power stations all our going to be in demand. Now some may disagree but I have a reason for this.
Now coming back to why I like commodities. One assumption I am making (which is also my risk quotient) is that I trust the government of India to execute moderately well in spending money allocated for the Stimulus Plan. We need for our government to invest in the country.
- Move tenders to build roads, railways and ports, power stations
- This helps Engineering company’s to get government orders
- To build you need construction materials
- To build you need heavy engineering equipments
- To build you need to employ labor, hence create employment
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