Morgan Stanley sees big upside for machinery stocks in the next years


Monica Almeida | Reuters

Traffic is diverted on Foothill Road as workers place K-rail barricades along burn areas during a winter rain storm in Ventura, California, January 9, 2018.

Investors should prepare for a large infrastructure plan from the federal government and position their equity portfolios accordingly, according to Morgan Stanley.

“We see a policy-driven increase in infrastructure spending as likely over time. Hence, investors should start studying its implications today,” Morgan Stanley’s research team wrote on Monday. “For investors who want exposure to this theme, our U.S. analysts analyzed selected stocks in their respective coverage universes that they believe will benefit most from an infrastructure spending boost across the Autos & Shared Mobility, Machinery, Metals & Mining and Transportation spaces.”

In the bank’s base case, infrastructure spending would return to its long-run average share of GDP, implying a $1.1 trillion package over 10 years. The flood of cash would be designated to rebuild the nation’s roads and bridges, drawing upon American machinery and auto manufacturers to help restore the highway system.

Source link

Products You May Like

Articles You May Like

This chart shows Apple’s new iPhones didn’t wow consumers
These are the best — and most affordable — suburbs for retirement
Avoid mental mistakes that could hurt your savings 401K in bull market
It’s key to understand mental investing roadblocks
10 years after the financial crisis, Americans are still looking for a deal

Leave a Reply

Your email address will not be published. Required fields are marked *