Infrastructure ETFs and shares may be getting another chance to build up as recent talks of government spending are allocating $50 billion in stimulus money toward the sector. Trang Ho for the Associated Press reports that estimates within the industry have targeted $2.2 trillion in repairs are necessary over the next five years to help repair the aging infrastructure.
Companies involved in building roads, bridges, transportation lines, transmission grids and anything used by the public stand to make money from government spending. Worldwide, government spending plans all involve infrastructure spending to help jump-start their economies. In the United States, checks may be mailed out within the next six months for government projects to ramp up.
And it’s not just the United States that’s turning an eye to its infrastructure sector:
- Singapore will spend $12 billion to $13 billion on a new cruise liner terminal, roads and parks and more
- Ontario, Canada, will put another $26.5 billion into roads, schools and hospitals over the next two years
- The Netherlands pledged $8 billion in deficit spending, on top of a $27 billion package
- iShares S&P Global Infrastructure (IGF): down 20.8% year-to-date
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.