Infrastructure Stocks
Trend: Rebuilding infrastructure addresses two political problems: high unemployment and decay in essential systems for transportation, electricity transmission, water distribution, and waste water treatment.
Nick Hodge at Wealth Daily describes infrastructure investing as The Only Investment with a Government Co-Signer. Excerpts below.
Link: Best Infrastructure Stocks.
...Governor from Montana, Brian Schweitzer:
We are going to build and entire new energy system in America. And we're going to create 5 million new jobs. Some say, 'Well, with the price of oil dropping from $100 plus to $50 a barrel, that the imperative is gone.' Au contraire. Now, we have so many people that are unemployed, this is a great program to build a permanent new energy system, including transportation, and use the people that are currently unemployed to build it.
This is shaping up to be one heck of an investment opportunity, with the Federal Government as your co-signer.
Here are a few more of the possible beneficiaries of an infrastructure boom that haven't spiked lately and are still at buying levels:
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Emerson Electric Co. (NYSE: EMR)
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Eaton Corp. (NYSE: ETN)
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Robbins & Myers (NYSE: RBN)
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ITC Holdings Corp. (NYSE: ITC)
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United Technologies (NYSE: UTX) and
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Brookfield Asset Management (NYSE: BAM)
Plenty of time remains to get yourself in position to take advantage of the first industry to rise from the ashes of financial disaster.
I expect most of these infrastructure stocks to track the progress of the new stimulus packages. That means they'll slowly accelerate over the next few months, and really take hold if the package comes to fruition early next year.
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