Kelly Burton 5.0 3 ideas

Burton notes that while AI/Data Center issuance is strong, "Areas like Chemicals which has been going through its own ongoing recessionary type environment" will struggle to issue debt. If the credit market is wary of lending to a sector, equity investors should be too. A "recessionary environment" in chemicals implies weak demand and pricing power for major players like Dow (DOW), LyondellBasell (LYB), and Eastman Chemical (EMN). AVOID the chemicals sector until the industrial recession bottoms. Global manufacturing rebound (China stimulus) spikes demand for chemicals.