Mark Parr of KeyBanc Capital Markets says one thing that investors can count on in this fragile economy is the infrastructure build-out, both domestically and globally.
"Not only is the U.S. talking about projects, but we've got over $500 billion of projects announced in China that may actually be closer to starting up than new projects in the U.S. could," he told CNBC.
Parr says he's convinced that those who see a collapse of the build-out, especially in China, are wrong.
"All I can tell you is what I read and what I see, and we're definitely going to be seeing more infrastructure spending in the next 12 to 18 months, not less," he insisted. (See his full comments in the video)
"Steel's been near and dear to my heart for a long time," he said. "The companies we like right now are the ones with electric-arc furnace steelmaking; they have highly variable cost structures; their inventory situations are in great shape; these companies are ready to benefit, once the new spending levels kick in."
He's talking about Nucor, Steel Dynamics, and Gerdau Ameristeel.
Nucor, Steel Dynamics, and Gerdau Ameristeel are all investment-banking clients of Parr's firm, and KeyBanc makes a market in shares of Steel Dynamics.