Interest rates. Real estate. Financial stocks. High-yielding dividend-payers. Those are some of the ...
Infrastructure: A Bi-Partisan Play
07/28/2016 8:00 am EST
Anyone who drives a car or turns on the tap can see it. The US alone needs to spend $3.32 trillion on infrastructure between now and 2025, notes Peter Krauth in Money Morning.
Indeed, both Hillary Clinton and Donald Trump are talking this up in a big way. It's the one thing they can actually agree on.
For her part, Hillary Clinton has said the United States is "dramatically under-investing in our future," pressing for roads and waterways to be funded.
Her campaign outline suggests she would boost public spending on infrastructure by $275 billion over five years and even establish a national infrastructure bank.
Donald Trump has called America's infrastructure "terrible," saying he'd "start the greatest long-term building project in American history." He proposes a massive trillion-dollar program to rebuild the country's deficient infrastructure.
This trend is global. Japan recently boasted about its new plan to spend $200 billion over the next five years on quality infrastructure "around the world."
China has also confirmed $720 billion in infrastructure spending from 2016 to 2018.
I first recommended the iShares Global Infrastructure ETF (IGF) in March and it is already up by 6.6%. I think it's headed much higher.
Remember - this build out will be worldwide, and this fund gives you unbeatable geographical diversification.
IGF is invested at 35% in the US, 9.5% Australia, 9% Spain, 7.4% Canada, 7% Italy, 6.5% UK, 6% France, 4.5% China, and 3.4% Japan, with the balance sprinkled across a few more emerging and developed countries.
And with an election fast approaching, this is probably the one sector that's best placed to profit from the coming tsunami of pork-barrel politics. Except now you know exactly how to position yourself to benefit.
Peter Krauth, Editor of the Money Morning/p>
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