With all the talk of the $2 trillion stimulus package the White House and Congress are using to help the U.S. economy rebounding from the coronavirus outbreak, neither politicians nor investors should ignore the importance of infrastructure, a theme accessible with the AGFiQ Global Infrastructure ETF (GLIF).
The AGFiQ Global Infrastructure ETF uses a multi-factor investment process to seek long-term capital appreciation by investing primarily in global equity securities in the infrastructure industry. President Trump is pitching a 10-year, $1 trillion infrastructure plan, which is scaled back from his 2016 campaign trail plan.
With 2020 being an election year and politicians facing the specter of running for reelection in a sluggish economy, economic revitalization is crucial and that’s something infrastructure can provide.
“The coronavirus epidemic has demonstrated the degree to which municipalities are on the front lines of American life, providing the key services and infrastructure that keep communities healthy and safe,” according to a commentary by QualifiedVentures in Barron’s. “Despite their critical role in protecting us, cities and states risk being an afterthought rather than a top priority when it comes to funding.”
With Some Help, GLIF Can Glitter
The strong, consistent demand for infrastructure has delivered stable, repeatable cash flows to investors. Meanwhile, population growth, aging infrastructure, and constrained government budgets are creating opportunities for the private sector. The high cost of entering the infrastructure business also limits competition or provides a wide economic moat for those already in the field.
Congress can provide a spark for assets like GLIF by finally on acting infrastructure.
“Immediate federal investment in improving the decayed city and town infrastructure. It’s become something of a joke in Washington that every week is infrastructure week, but no one debates the need for real investment,” notes QualifiedVentures.
With the White House looking to unleash a massive wave of stimulus onto the U.S. economy and in an effort save jobs numbers from sliding, infrastructure could be in style as the coronavirus situation, hopefully, eases soon. Some data points confirm that some of the stimulus package should be going toward infrastructure.
“For the same price as the proposed support for the airline industry ($50 billion), about 85% of the nation’s sewage overflow problem could be eliminated. That would improve drinking water, public safety, property values, fishing and recreational economies, and environmental quality for the residents of 32 states,” according to QualifiedVentures.
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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.