Strong As Steel (X, AKS, NUE)

It has been a tough week for American steel companies. Fears of falling Chinese demand for iron ore and concerns about slowing global economic growth hurt steel names this week. AK Steel AKS has led the way down, shedding 13% for the week. U.S. Steel X and Nucor Corporation NUE are down 6.7% and 5.1%, respectively. U.S. steel is recouping some losses today, up 63 cents, or 1.40%, to $45.77. For investors betting on an economic recovery, steel names are the way to go. Steel manufactuers are highly cyclical and levered to the global growth story. As China goes, so goes steel. Efforts to curb lending by the Chinese government have lowered steel production and demand in China. Assuming China executes its "soft landing" strategy properly, steel names should continue to benefit from China's robust growth.