With global central bank monetary policies reaching their limits in an attempt to stimulate growth, it may be up to international governments to step in and spend on large infrastructure projects as a means to promote productivity and bolster economic growth.
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“One of Trump’s priorities during the campaign was his desire to invest $1 trillion in improving the nation’s infrastructure over the next 10 years,” reports ETF Daily News. “It’s a bold initiative made more complicated by the fact that he wants to fund it with private investment. While this plan may seem a bit audacious, both Republicans and Democrats generally agree that additional infrastructure spending is necessary. Trump also has the benefit of a Republican controlled House and Senate, so it’s likely that some type of significant infrastructure spending will pass.”
With the economy recovery maturing, the materials sector, which is closely tied to the prices of raw materials, have traditionally done well as inflation rises and late-cycle economic expansions help support demand.
For more information on the Materials market, visit our Materials category.
VanEck Vectors Steel ETF
