Recent rhetoric out of the White House has many investors concerned that a global trade war could occur in the near future.
This has understandably led to investors growing nervous about the prospects of it derailing global economic growth.
I am optimistic that there won't be a global trade war, which should allow the global economy to continue growing at a solid rate for the foreseeable future.
This would likely mean that demand for commodities grows, supporting or even improving current prices.
With that in mind, I think now could be an opportune time to consider gaining a little exposure to the resources sector if you don't already have it.
Three shares I would consider buying today are:
BHP Billiton Limited (ASX: BHP)
My first preference in the resources sector would have to be this mining giant. I think the quality of its assets and the relatively cheap price its shares trade at makes it a stand out pick. In addition to this, it is also a generous dividend payer and currently provides investors with a trailing fully franked 4.4% yield.
Mineral Resources Limited (ASX: MIN)
I think this diversified miner and mining services company is one to consider after its recent share price weakness. Although the future price of lithium is a matter of fierce debate, I remain confident that prices will remain high enough for miners like Mineral Resources to generate high levels of free cash flow.
Rio Tinto Limited (ASX: RIO)
After BHP Billiton, Rio Tinto would be my next favourite option in the resources sector. Especially after its exit from the coal industry last month. I thought that Rio Tinto commanded even better than expected prices for these assets, which should put it in a position to return money to shareholders in the form of a special dividend or share buybacks. Based on the last close price Rio Tinto's shares provide a trailing fully franked 5% yield.
