Stocks

Rebuilding America paves the way for potential gains in these construction and engineering stocks – MarketWatch

Given the amped-up level of political rancor, it might seem like President Trump’s $1 trillion infrastructure spending plan announced Tuesday is dead on arrival. After all, Democrats could be wary of allowing him credit for a big spending plan right ahead of the elections.

This would be the wrong conclusion.

Some variation on Trump’s spending proposal stands a good chance of getting into law soon, for the reasons below. If approved, it would boost the prospects of the 30 stocks and ETFs that my fund manager infrastructure Sherpas single out below.

First, three reasons why a wide-ranging infrastructure-spending plan may finally get approved:

Reason 1. If Democrats foot-drag on Trump’s proposal, they might be accused of obstructionism, says Brian Sponheimer, an infrastructure analyst who helps manage the Gabelli Asset Fund US:GABAX. That would make them look bad because more than a few people have noticed we need to spend more on roads and bridges, and communications and electrical-grid upgrades. A smaller federal infrastructure spending plan now in place expires in September.

Reason 2. At a time when politicians are looking for ways to spend to get us out of the Covid-19 lockdown recession, infrastructure seems
Source…