Related: Caution on Coal: Surging Exports Doesn’t Herald Reversal of Fortunes
KOL was boosted in significant fashion last year on expectations that President Donald Trump would create more coal-related jobs, but investors should approach that thesis with caution.
“The Coal Index has already dropped a bit from the trendline touch earlier this month. The fear is that, should the index fail to break above the trendline, another trip down the shaft may be in store for coal stocks. Of course, should the index succeed in breaking above the trendline, it would open up considerable upside for coal stocks,” according to ETF Daily News.
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