President Biden proposed a billion dollar infrastructure bill and the Senate approved, which raises the questions which companies should benefit from the money flowing into the countryside. If a gift horse looks you into the mouth where should you do?
In an article by David Randall of Reuters, he asked a number of investment managers what were they buying?
If you like index funds, start with the S&P 500 materials and industrial sector indexes.
Scott Helfstein, head of thematic investing at ProShares said his firm has been buying real estate trusts focusing on ports and cellphone towers such as Crown Castle International.
John Mowrey, chief investment officer at NFJ Investment Group has been adding to companies such as Norfolk Southern Corp or the railways.
The ishares US Infrastructure Exchange Traded Fund has seen positive inflows for 5 of the past 6 weeks is poplar.
Barry James of James Advantage Funds has been adding to FedEx and Amazon in the hope improvement in bridges will improve delivery times for items that travel by the highway.
Linking to dividend paying stocks, the infrastructure fund of $1 trillion is a lot of money, but it is not likely to a game changer, but it will definitely will help which is the reason you consider the alternatives. If the government is giving away money, your company should be benefiting.
There are more questions than answers – to raising questions.