“If investors don’t have a dream to latch on to, stable-growth and income-generating industries usually outperform. Today, the dream is very much tied to fiscal stimulus. Investors are increasingly relying on governments in Japan, the US and elsewhere to spend more aggressively,” according to ETF Daily News.
The American Society of Civil Engineers calculated that the U.S. will fall $1.44 trillion short of the $3.32 trillion required to inves tin infrastructure through 2025.
According to Trump’s book, “Crippled America: How to Make America Great Again,” he has called for a “trillion-dollar rebuilding program” that will be “one of the biggest projects this country has ever undertaken.”
While the federal government goes through the political throes, states and cities seem to be ahead of the curve, spending billions of on infrastructure projects. The recent spending is still only a drop to what is needed, but municipal officials who have hesitated to borrow are beginning to loosen their purse strings.
“Of course, it will take several quarters to draw up a comprehensive infrastructure spending plan—and even longer to implement it. But if spending of this nature becomes a reality, it can provide a long-term source of demand that will be critical to lifting valuations in industrials and other cyclical sectors,” adds ETF Daily News.