Riding the Railroad Boom

Don and Craig Hodges of Hodges Fund say high fuel costs are benefiting the rail industry. They also like steel and high-tech stocks

What stocks will do best in the days to come? Don and Craig Hodges, the father and son team who co-manage the Hodges Fund (HDPMX ), say transportation, steel, and high-tech stocks should come out on top. As Don Hodges explains it, railroads are particularly attractive partly because high fuel costs are affecting other modes of transport more severely and because many goods arrive from China on the West Coast and then continue by rail.

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