Trade disputes and tariffs are the current hot topic for industrial investors, and there is some question if this could be industrial's black swan for what is otherwise a roaring bull market. However, most investors aren't concerned, looking to strong fundamentals to offset any disruption from trade disputes. On the other hand, some investors are actually finding a bright side to the trade turbulence, according to a survey from Real Capital Markets.
"Some industry experts/survey participants voiced optimism that USMCA, the new NAFTA agreement, ultimately would be approved by Congress and bring a boost to the industrial sector," Tina Lichens, COO of Real Capital Markets, tells GlobeSt.com. "The new pact increases workers' pay in Mexico, makes U.S. pay rates more competitive, and calls for 40% of the steel used in the manufacturing of automobiles to be made in the U.S.. These types of expected outcomes continue to shape and redefining the global supply chain, through tariffs and other means, and this important agreement is viewed as one more step toward strengthening the U.S. industrial sector."
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