Specialty chemicals: Stick to few as a mix of head and tailwinds emerges. 5 stocks with upside potential of up to 40%

As the tariff war gets hotter, a good bit of the heat will be generated in the specialty chemicals space. Why? Because, chemical supply chains are very rigid by nature. To put this in perspective: If a product uses a certain chemical as raw material, and if there is a sudden shortage of that chemical, can it be replaced by another one? The answer is no. For the user, there is no option but to buy that chemical at a higher cost. Now, the reverse scenario. Suppose there is sudden overproduction of the chemical, will the user buy more because it is cheaper? The answer is again no. So, as tariffs cause disruption in the chemicals sector, we will see a mix of head and tailwinds.