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Building a case for increased infrastructure spending

billion-photos / Shutterstock
billion-photos / Shutterstock

The U.S. presidential election is entering the homestretch and investors are gauging the potential investment implications of the candidates' proposed plans. As I noted in my last blog , amid a bitterly fought campaign, one topic is drawing a fair amount of attention: increased infrastructure spending. It has been a particular area of focus for both parties and even the Federal Reserve. It is a rare area of agreement between the two presidential candidates, suggesting that whoever wins the election will likely emphasize it in the next administration. Moreover, the phenomenon is not only in the United States, but in other developed countries. Are the stars aligning for significant increased infrastructure projects, and does this have implications for investors? Among the reasons that suggest they may be:

Monetary policy

Economic need

productivity
chart-infrastructure-spending-v2
a recent report from the BlackRock Investment Institute

Low funding costs

announced IGF IYT IYJ Heidi Richardson is Head of Investment Strategy for U.S. iShares and a regular contributor to The Blog . Heather Apperson, an Investment Strategist with iShares, contributed to this blog.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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