These 14 infrastructure stocks represent several themes that could enjoy a boost should the roughly $1 trillion Bipartisan Infrastructure Investment and Jobs Act become law.
President Joe Biden's administration has spent months on one
of its highest priorities: the much-anticipated "American Jobs Plan"
– a potential booster shot to infrastructure stocks of all shapes and sizes.
But while the AJP is effectively dead in the water, a new
deal is showing promise in Washington. Specifically, a roughly $1 trillion
compromise plan called the Bipartisan Infrastructure Investment and Jobs Act
has recently passed in the Senate.
A reminder: Biden's original $2.25 trillion infrastructure
proposal would have been the biggest public works program in decades. In the
president's own words, it would be "unlike anything we have seen or done
since we built the interstate highway system and the space race." But
large portions of the proposed bill faced significant hurdles in Congress. For
example, there were sections that addressed improvements to the home healthcare
system and called for the creation of jobs at "prevailing wages in safe and
healthy workspaces" that critics said had little to do with what we might
normally consider infrastructure.
That said, infrastructure spending is generally popular with
voters. Hatred of potholes and gridlock seem to be one of the few areas of
agreement between Republicans and Democrats.
"Maintaining America's place as the world's premier
economy isn't something that just happens," says Chase Robertson of
Houston-based RIA Robertson Wealth Management. "It requires investment.
Most of that investment comes from the private sector, but certain things –
particularly roads, bridges and shared infrastructure – tends to be funded by
the government. And the new administration has made it very clear that this is
a major priority."
The new infrastructure bill, which likely won't be
considered by the House until fall, has a nearly $1 trillion price tag that
includes $550 billion in new spending on physical infrastructure such as roads,
bridges, rail, broadband internet and electric vehicles, among other projects.
That should be a boon to traditional infrastructure stocks.
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