dtblount

Investing in Infrastructure

Great article and a great macro tend that I believe in firmly. While I could write/talk about this topic all day, I'll keep it short-ish...

I think the most immediate benefits of the larger infrastructure supercycle that we are entering into is going to be riding the coattails of the current commodity supercycle. As the price of gold, PGMs, and nearly every other natural resource have been at or near record highs in past months, some of the best long-term plays - especially after July's atrocious performance in commodities - is to buy up the stocks related to expanding agricultural yields and mining/exploration. I've read in several sources that the US will need to spend anywhere from $1T to around $3T in the next decade simply to MAINTAIN the current infrastructure, and that much of the US infrastructure is not in acceptable conditions at all (remember the 35W bridge collapse last year in Minnesota???). Additionally, with massive economic growth in the BRICs/EM/Frontier Markets, infrastructure development is in dire need.

Jeffrey Lin, I agree 100% about GE essentially being an infrastructure ETF. They seem to be focusing in on it as their core business.

I'd also take a look at Macquarie Bank. They have been trounced as of late, but with their various infrastructure funds, knowledgeable personnel already on staff, I'd be shocked if they didn't expand their public/private model in more infrastructure-related sectors.


Cheers