Free ETF Pick: Play on Infrastructure Spending

With a global slowdown crashing down upon us, this may not seem to be the best time to invest in infrastructure or emerging markets but I believe this sector will lead the recovery. This investment theme is tied to two unmistakable trends: the urbanization and infrastructure gap in emerging nations.

In 1975 there were only three cities in the world of over 10 million. In 2008, there are 20 cities of which 15 are in emerging markets. China alone has over 100 cities with a population exceeding 1 million. Along with this urbanization has come stronger economic growth and expanded international trade.

This means that unless these countries build more airports, roads, railways, seaports, and pipelines, they will literally choke on their growth. Morgan Stanley predicts that $22 trillion will be spent on these projects over the next decade. This also include communications infrastructure like mobile telecommunications and cable providers.

An ETF that plays into this theme is our ETF Pick of the Week - for a description of the ETF and advice on timing and risk management and to receive limited time 50% offer, please go to:

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Here are some interesting facts that highlight the infrastructure opportunity.

• Only 5% of Brazil’s roads are paved
• Canada recently launched a $33 billion infrastructure plan
• China is planning to build 97 regional airports by 2020
• The top 20 container terminals have seen growth of 42% during the past three years
• Mumbai has an astounding 18,424 people per square mile (New York has 1,274)
• South Africa is 4th fastest mobile phone market in the world
• Mexico City will soon pass a population of 20 million
• China is spending 10% of its GDP on infrastructure a year
  

Comments

[Thomas Smic...:]

Good observations, but is Seeking Alpa supposed to be used as a teaser advertisement?

2008 Dec 25 09:01 AM

[Eurobondonline:]

Infrastructure strategy
www.eurobondonline.com...

2008 Dec 25 09:24 AM

[searcher:]

Agree w/TAS. Spirit of this venue needs to be less overtly abused. Come on Carl, we need more seed in the bird feeder.

2008 Dec 25 11:24 AM

[Marco Polo:]

This article was a complete waste of time. The author might also have said the economy might get worse before it gets better, or gold and silver will benefit when the US dollar tanks.

A complete waste of SA time and space.

2008 Dec 25 09:26 PM

[Ecclesiastes:]

Such so-called "articles" degrade the site.
Doesn't "Seeking Alpha" have an editor to block them?
Or is it trying to discourage readers?

2008 Dec 26 10:59 AM

[SJD:]

This article is no better than spam. Should not be permitted on this open forum. And besides, "you don't need a weather man to tell you what direction the wind is blowing" regarding ETF investing fior infrastructure or anything else. There's tons of info out there for retail investors to digest. Enough of these opportunists trying to skim money from us under the guise of being experts. We've seen how the so-called experts have performed during this meltdown.

Paul Price's analyses puts this garbage to shame.

2008 Dec 27 09:46 AM

[User 240382:]

Carl and SA slipped when they allowed this article/spam. For no charge reference the following article from last summer on Infrastruture ETF's. No charge! No free trial!

seekingalpha.com/artic...


On Dec 25 09:01 AM TAS wrote:

> Good observations, but is Seeking Alpa supposed to be used as a teaser
> advertisement?

2008 Dec 27 11:05 AM