Tips on saving for your future are almost a dime a dozen out there. Well, maybe they’re really more like hundreds of dollars for even just one good tip from a professional, but here’s some good news for you. My tips for you are still absolutely free right here! But remember that you get what you pay for, so here is what I think on today’s topic: investing in infrastructure.
For years now there has been a lot of talk about our aging infrastructure* and the need to rebuild, repair, replace, and create all new projects, buildings, roads, etc. all over the country.
- the underlying foundation or basic framework (as of a system or organization)
- the permanent installations required for military purposes
- the system of public works of a country, state, or region; also the resources (such as personnel, buildings, or equipment) required for an activity
So, where are we right now?
In just the past couple of weeks, the problems that America faces regarding the aging infrastructure just grew even bigger. Natural disasters like damaging hurricanes Harvey, Irma, Jose, and Maria have virtually devastated South Florida, Puerto Rico, the U.S. Virgin Islands as well as many Caribbean Islands too! Texas’s gulf coast is in just as bad of shape and the cost of repairing, replacing, and cleanup for those areas will be enormous. It will take hundreds of billions of dollars (if not trillions) and years to restore. With our national debt officially reaching $20 trillion, these disasters have added another huge problem for us all.
There has been so much emphasis on “fixing” infrastructure and yet at the same time, constant talk about revision and cutting of our taxes (an idea that has yet to be finalized), and now all of this additional expense. Many are now wondering if tax revision and cuts make sense or are even possible under these circumstances.
You have no doubt read and heard about some of the horrific incidences around the country like bridges collapsing or complaints about local road conditions or even the many problems traveling through airports or using trains long before Harvey and Irma. Those conditions will also require a massive rebuilding effort. It doesn’t take a genius to figure out that we have long been neglecting the basic backbones of what we all depend on, our infrastructure.
Investing in the market
I don’t claim to be an expert when it comes to the stock market and picking and investing, but I do read a lot and follow the trends. But let’s face facts, no one really knows what the markets will do and in today’s world, the daily events can cause a market spurt or dramatic decline just from one headline.
Despite that uncertainty, it seems from all I have read and heard it appears right now may be a very opportune time to look at some stocks that can and should really benefit from our countries intention to rebuild. It is one reason that the market is on the rise and setting records these days. Speculation about what is being discussed has driven the market in a positive direction.
Stocks and mutual funds that deal especially with construction and development of our infrastructure seem more likely to continue to grow and succeed as the overall market has over the past several years. Many experts think that the stock market must make some kind of course correction and simply can’t maintain its huge record breaking results of the past year. Corrections can often occur and then the market bounces right back.
Our future depends on it
One certainty is if we don’t address some of these serious problems now, there may be reason to believe and expect it will compromise our safety and quality of life and we may never be able to catch up and be fully prepared for the 21st century.
The decline and fall of the Roman Empire rings a bell here for me in many ways. I could easily write a post comparing us with the Romans, but the point of mentioning it is simply to say that every great civilization rises and falls on how they handle the many crises that they face and whether or not they succeed in their efforts to overcome them. We really have a serious problem. Investing in infrastructure makes sense, but as in any type of investment it involves risk of course.
Despite the contentiousness between Congress and the President, of all the issues on the agenda, infrastructure may be the only one that can truly be accomplished. There seems to be actual bipartisan support for budgeting money for this nationwide rebuild, and most people do agree that it has to happen. The real question is just how it will be paid for.
Where to invest
My own opinion, for what it’s worth, is that it would be wise to invest in the companies likely to benefit from this rebuilding of our infrastructure. I have selected seven stocks and three mutual funds that I have researched and I am deciding right now on several of them to invest in. I present them to you for your consideration. These are stocks that have a good record and seem to have a considerable upside with infrastructure being in the forefront, at least to those in the know:
GVA – Granite Construction Inc.
Granite Construction Inc. is a diversified heavy civil contractor and construction materials producer in the United States. It is engaged in the construction and improvement of streets, roads, highways, mass transit facilities, airports, and others.
FIX – Comfort Systems USA Inc.
Comfort Systems USA Inc. is a leading provider of mechanical services including heating, plumbing, air conditioning, piping, and controls.
ACM – ACEOM
ACEOM provides consulting and engineering consultation services to transportation, environmental, and facilities. It mainly designs, builds, and operates with government, business, and other large organizations.
MLM – Martin Marietta Materials Inc.
Martin Marietta Materials, Inc. engages in the provision of aggregates products such as crushed stone, sand, and gravel for the use of the construction of infrastructure, nonresidential and residential projects, railroad ballast, agricultural, utility, and environmental applications.
OC – Owens Corning
Owens Corning engages in the development, manufacture, and marketing of insulation, roofing, and fiberglass composites. It operates through the following segments: Composites, Insulation, and Roofing.
X – United States Steel Corporation
United States Steel Corp. engages in the manufacturing and selling of steel products. The Flat-Rolled Products segment includes managing steel plants and production facilities that manufacture steel slabs, rounds, strip mill plates, sheets, tin mill, iron ore, and coke.
EMR – Emerson Electric Co.
The Emerson Electric Company is an American multinational corporation headquartered in Ferguson, Missouri. This Fortune 500 company manufactures products and provides engineering services for a wide range of industrial, commercial, and consumer markets. Emerson has approximately 111,000 employees and 205 manufacturing locations worldwide.
Infrastructure equity funds invest more than 60% of their assets in stocks of companies engaged in infrastructure activities. Industries considered to be part of the infrastructure sector include: oil & gas midstream, waste management, airports, integrated shipping, railroads, shipping & ports, trucking, engineering & construction, infrastructure operations, and the utilities sector.
GLIFX Fund – Lazard Global Listed Infrastructure Port
The fund invests primarily in equity securities, principally common stocks, of infrastructure companies and concentrates its investments in industries represented by infrastructure companies. It invests at least 80% of its assets in equity securities of infrastructure companies, which consist of utilities, pipelines, toll roads, airports, railroads, ports, telecommunications, and other infrastructure companies, with securities listed on a national or other recognized securities.
PGUAX – Virtus Duff and Phelps Global Fund
The investment seeks capital appreciation and current income. The fund invests globally in infrastructure companies involved in the energy, utility, transportation, and communications industries. Under normal market conditions, it invests at least 80% of its assets in dividend-paying equity securities of U.S. infrastructure companies that are located in three or more countries, one of which will be the United States. Under normal market conditions, the fund will invest at least 25% of its assets in securities of U.S. issuers.
CSUAX – Cohen & Steers Global Infrastructure Fund
The fund invests at least 80% of its total assets in U.S. and non-U.S. common stocks and other equity securities issued by infrastructure companies, which consist of utilities, pipelines, toll roads, airports, railroads, marine ports, telecommunications companies, and other infrastructure companies.
Of course, unless you are super knowledgeable about investing, it’s always a good idea to get some professional advice before you plunge ahead.
But, U.S. roads, highways, tunnels, bridges, airports, and other buildings are in serious disrepair and investors can not only help solve the problem but can also create their own personal success building their own wealth if they look at the big picture and the long haul. That’s why I am suggesting taking some action.
Do you recognize an opportunity in investing now? Are you prepared to take an educated risk in infrastructure investing? What companies do you think will prosper when infrastructure repair is fully underway? Does investing in the market scare you? Is investing in infrastructure something that attracts you?