Back on February 13th, I recommended industrial conglomerate United Technologies (UTX) because it had pulled back significantly to $125 per share. I've been a big fan of this aerospace-heavy conglomerate because I believed that the Trump administration's policies, which included increased defense spending, lower taxes, and fewer business regulations. In addition to that, United Technologies had placed itself firmly behind trends associated with steady urbanization growing global middle class, in things such as elevator and escalator systems, commercial aerospace, climate control, fire safety systems, and security systems.
Shares pulled back in early February along with the rest of the market, and I took that opportunity to emphatically recommend United Technologies. Shares recovered quickly, which made my call look very smart. Unfortunately, President Trump's policies toward business appear to involve give as well as take. With the President's announcements of tariffs on steel products on many countries, including China, which will involve cost input inflation for several of United Tech's products, business could and likely will be affected. That's to say nothing of possible reciprocation from China, where United Technologies does a significant and growing amount of business, particularly with Otis escalators and elevators.
