The concrete and cement industries are bracing for a demand boom, says CNBC.
That means investors may want to keep an eye on stocks like Cemex (CX), Vulcan Materials (VMC), US Concrete (USCR), Eagle Materials (EXP). Supply chain issues coupled with potential demand from a $1 trillion infrastructure bill could send prices even higher.
In fact, according to Anirban Basu, chief economist for the national construction industry trade association Associated Builders and Contractors, as quoted by CNBC, “In the short-term, we continue to have the supply chain difficulties, particularly in certain markets, and so prices are rising. So right now, apparently, supply is not rising up to meet demand.”
Aside from the stocks mentioned above, another way to gain exposure is with ETFs, as we noted on June 24, 2021:
iShares Global Infrastructure Index ETF (IGF)
One of the best ways to diversify – at less cost is with an ETF, such as the iShares Global Infrastructure Index ETF (IGF). At $46 the ETF offers us exposure to Enbridge Inc., TC Energy Corp., Kinder Morgan, Duke Energy Corp., Williams Inc., and Exelon Corp.
SPDR S&P Global Infrastructure ETF (GII)
At $53, the ETF offers exposure to stocks including Enbridge Inc., TC Energy Corporation, Duke Energy Corporation, Kinder Morgan, Exelon Corporation, Xcel Energy, and Southern Company. Since bottoming out around $49 in March, the ETF ran to $55. While the GII ETF recently dipped to $53, weakness may be a great opportunity.
Global X US Infrastructure Development ETF (PAVE)
At $27, PAVE offers exposure to Nucor Corp., Trane Technologies, Eaton Corp., Deere & Co., Emerson Electric, and Vulcan Materials. Weakness may also be an opportunity with this idea, as well.