As the year putters along and Washington seems unable to push through much-needed funding for infrastructure, infrastructure investors’ balloons have slowly deflated. While pegging an investment strategy to political outcomes may not be the soundest strategy, there are companies that stand to benefit hugely if increased government spending does pass.
Sooner or later, my feeling is the money will start to flow. The situation, after all, is rather dire. In 2013, the American Society of Civil Engineers (ASCE) released an “Infrastructure Report Card,” giving the U.S. an uninspiring D+ rating.
They estimate the cost to repair and modernize infrastructure at over $10 trillion by 2040, half of which is currently unfunded.
The need is clear. When politicians from both sides of the aisle can agree on and approve additional spending, the three funds here will be big winners.