Bank of America: Investing in Ailing U.S. Infrastructure for Long-Term Success

Investing in Infrastructure: The “Old School” Bet for Long-Term Success

In a world filled with flashy headlines about the latest trends and hot investment opportunities, sometimes it pays to take a step back and focus on the basics. According to Bank of America, one such “old school” investment opportunity lies in the ailing U.S. infrastructure.

The U.S. has been neglecting its infrastructure for over a decade, leading to crumbling bridges, outdated electric grids, and a host of other issues. The recent collapse of the Francis Scott Key Bridge in Baltimore serves as a stark reminder of the urgent need for infrastructure investment.

As manufacturing activity continues to grow, the strain on infrastructure will only increase. Additionally, the rise of AI technology is expected to drive further investment in infrastructure, as data centers powering AI require significant energy resources.

The Biden administration has already taken steps to address the nation’s infrastructure needs with bills like the Infrastructure Investment and Jobs Act of 2021. These investments are expected to continue regardless of the political landscape, as the cost of not investing in infrastructure is simply too high.

Companies in the industrials and materials sectors stand to benefit the most from infrastructure investments. Stocks like Caterpillar, Eaton Corp., Martin Marietta Materials, and United Rentals are all poised for growth as infrastructure spending increases.

For investors looking to capitalize on this trend, funds like the iShares US Industrials ETF and the Vanguard Materials Index Admiral offer exposure to these sectors. By focusing on the “old school” bet of infrastructure investment, investors can position themselves for long-term success in a rapidly changing market.