One thing that never goes out of fashion no matter how bad times get is garbage, giving a trash exchange traded fund (ETF) a chance to outperform the broader market in a recessionary period.
Market Vectors Environmental Services (EVX) certainly has potential, and the United states generates 750,000 tons of garbage daily. While it’s outperforming the S&P 500 only slightly, down 35% year-to-date vs. the S&P down 38.9% year-to-date, there are some things happening in the world of garbage that could give this fund a boost down the line.
Many landfill companies are planning on banking on their pileup as methane gas has been proven to to be a vast energy source, which is extracted as the trash decomposes. Local power companies can purchase the gas, and the smell from the landfill is lessened.
Landfills are looking to expand and as you can imagine, there will always be a need for them.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.