The stock market seems focused on only two types of stocks: technology companies involved with AI, and regional banks—which are going through a crisis.
Investors are ignoring the rest of the stock market, which is just drifting. But that should not stop you from picking out a few investing gems from the large body of adrift stocks.
Let’s look at one particular opportunity in the infrastructure sector…
Every four years, the American Society of Civil Engineers’ (ASCE) Report Card for America’s Infrastructure grades the condition of U.S. infrastructure in the familiar form of a school report card, assigning letter grades based on the overall physical condition of the infrastructure and needed investments for improvement.
The last overall grade, in 2021, was a poor C-minus, so it should not come as a great shock that at least $2.6 trillion needs to be spent to replace unsafe bridges, old dams and potholed roads if the country’s infrastructure is to be brought up to a better grade.
As the United States goes through a program of upgrading its crumbling infrastructure over the next decade, there will be a structural demand story for basic materials.
With infrastructure spending in the background, the intersection between the price of their products and the cost of their inputs is aligning to make it a very good time to be a company involved with construction supplies (aggregates, cement, etc.) in the U.S.
For instance, the average cost for U.S.-made cement hovered around $130 per metric ton in 2022. That is its highest average level for many years, and it has barely fallen—despite forecasts of lower demand from construction projects linked to the residential housing market.
Meanwhile, costs have…
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