How a wall along Mexico can make you some money

We are now entering into a Trump era and he has made a lot of promise. While it will be naïve to believe what is said during the election campaign will always be honored, especially those from professional politicians, Trump is a businessman and he is going to use his business sense to guide his administration, which is totally a new phenomenon. So we have to see how much Trump will implement his promises made. One promise he is very vocal about and appears he is very serious about is to build up a wall along the border with Mexico. He even made a trip to meet the Mexican president on this proposal. I think this is not something he just talked about but likely for real. Actually believe or not, Congress has already approved a plan to build up such a wall but Trump’s plan is even more extensive I believe. Part of his plan is to make Mexico to share the cost for the wall. So which companies may benefit from building such a wall? Certainly many but one thing that is a must have for a wall is cement. I bet the demand will be huge if indeed a wall thousand miles long is built up. Let’s assume that Mexico ends up having to pay for the wall (don’t forget, if Trump is serious, he can easily use the economic pressure to force them to compromise), don’t you think they would prefer to use the cement produced by them? I bet so!

 

Based in San Pedro, Mexico, Cemex (CX) is a cement manufacturer that should great benefit from this initiative from both perspective. Don’t forget, Trump’s another slogan is to "Make America Great Again", a lot of which is about largely rebuild or improve the US third world class infrastructure. Again, CX will for sure benefit as well. Keep in mind, CX, while a Mexico company, is a cement producer for global supply. Right now it is in a correction mode and very close to a strong support around $7. I think it will be a great Trump stock to own for the next few years.