MARKET VECTORS STEEL (AMEX:SLX)

leohath (< 20) Submitted: 12/20/2007 2:02:58 PM : Start Price: $73.69 SLX Score: -36.69

Takes advantage of rocketing steel prices and rising global demand (mainly China and India), get a good diverse mix of the major steel firms in this ETF from Market vectors. (72.21% YTD) A strong 2008 anticipated.

However, since steel is subject to intense price competition and market volatility, along with governmental interference, tremendous returns are not something you should expect to experience all the time.

SLX can be looked at as another way to participate in emerging markets like China and Vietnam, where strong demand for steel is led by growth in autos, construction, and consumer durables.

For most investors, a more diverse approach to commodities is probably a better approach, but for those who can afford concentration and the risk that goes with it, this fund could make an interesting, but small, component of your portfolio. Recommended 'Buy'

A less risky alterantive which gives you exposure to steel is PowerShares DB Base Metals (DBB)