Wall Street could soon benefit from the massive infrastructure spending being planned by the Joe Biden administration. The $2 trillion infrastructure plan, unveiled by the White House few weeks ago, is aimed at improving and building new infrastructure across the United States. Apart from the benefits of the physical infrastructure that would be created using this, Michael Zezas, Head of Public Policy Research and Municipal Strategy for Morgan Stanley believes the money flow could also aid Wall Street. Michael Zezas in the last Morgan Stanley podcast talks about various sectors that stand to benefit from this infrastructure super-cycle.
“One obvious place to look is at cement and steel companies. With a plan to spend about $1 trillion on transportation, water and affordable housing, that’s a lot of steel and cement that will be put to use,” he said. Steel stocks such as Rio Tinto, Nucor, and Wheaton Precious Metals have surged over 5% each in the last one month. Similarly, other building material stocks have galloped higher in the last one month.
News Source: financialexpress