Eq: Materials

Eq: Materials (2)

(Chicago)

This infrastructure package is a big deal in many ways. Not only has it been—and will it be—a major market-mover, but the deal is also expansive and intricate in scope. For example, did you know that $100 bn has been specifically earmarked for increasing internet connectivity/infrastructure, which Biden refers to as the new electricity. As one can imagine, this will creative strong returns for firms that specialize in the space. Accordingly, take a look at two stocks: Applied Materials (Nasdaq: AMAT), and American Tower Corporation (REIT) (NYSE: AMT). AMT is a chipmaker and the forthcoming expansion of internet connectivity is seen as a big driver for the chips they make. American Tower is a major provider of 5G broadband, which will be heavily supported the proposed infrastructure package.


FINSUM: If and when it passes, this package is going to be a huge market driver for years to come. These stocks seem like a no-brainer.

(Washington)

This week was a big one for infrastructure stocks. After years of discussion, Biden took action and put forth an eye-opening $3 tn package (in two parts) for American infrastructure. The package would focus on infrastructure, education, work force development, and fighting climate change. The aim is to make the economy more productive. However, for the stock market, one of the immediate benefits is how such government dollars would affect infrastructure stocks. Most specifically, look at the following sectors: machines, construction, and materials stocks.


FINSUM: $3 tn is a great deal of money, and a lot of it will likely flow into the private sector to fulfil these mandates. Time to dig in and pick winners. We will continue coverage on this in the coming week.

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