Displaying items by tag: NFRA

(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.

Published in Eq: Materials

(Washington)

Biden’s new proposed $2 tn infrastructure package is a gargantuan bill (coming right after the newest pandemic relief package) that will have significant effects on stocks generally, and specific ones more narrowly. The plan is so big that it harkens back to 1950s era spending. Barron’s described it best, saying “At 10% of current gross domestic product, doled out over eight years, the plan reads like a Rooseveltian blueprint for economic and social engineering”. The big winners are pretty clear: infrastructure stocks, and more specifically construction and industrials. The Invesco DWA Industrials Momentum (PRN) and the Industrial Select Sector SPDR (XLI) are great ways to play the rise in these types of shares, with the latter offering more large-cap exposure. In terms of specific names, look for MasTec, Aecom, and Jacobs Engineering Group.


FINSUM: Biden is setting up infrastructure stocks to have a golden run over the next few years. As the package inches closer to passing, these sectors should rise.

Published in Eq: Industrials

(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.

Published in Eq: Materials

(New York)

Infrastructure investment is a fascinating area that can have good yields and strong returns. However, advisors should be forgiven if they feel like the hype that has surrounded it over the last five years has never matched reality. Politicians have been talking about a new golden age of US infrastructure investment since the Obama years, yet almost nothing has materialized. That seems like it will change under Biden, and the whole sector looks poised to benefit. According to Goldman Sachs, the big winners look likely to be materials, construction, and machinery stocks.


FINSUM: Frontrunning this infrastructure package could be a good idea. As soon as there is an indication that it may become a reality, there will likely be a work-from-home-like jump in prices.

Published in Eq: Dividends

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