Infrastructure is decidedly unsexy for investors.
However, it does come with some major benefits – in fact, JP Morgan Asset Management says that infrastructure investments tend to have low correlation with other asset classes, helping portfolio diversification. In addition, infrastructure is often protected from inflation, while providing a high yield and stable cash flows.
Here are some ways that regular investors can get access to the infrastructure sector:
- Materials stocks: Millions of tonnes of cement, concrete, steel, and other materials will be needed
- Construction and engineering stocks: These are the companies that will get the contracts to rebuild America
- Heavy machinery manufacturer stocks: Heavy machinery will be needed to get construction jobs done
- Infrastructure ETFs: Alternatively, there are thematic ETFs that build their funds around infrastructure
How will you try to play the coming infrastructure boom?
Courtesy of: Visual Capitalist
