EdenTree's Harris: How To Gain Exposure To The 'Lipstick Effect'

Improving and expanding US infrastructure involves more than building roads and bridges. While efficient transport systems are vital, without things like reliable communications networks, safe water and a dependable power supply, the economy simply wouldn't be able to function. This constant need to improve the country's infrastructure means that many companies stand to benefit throughout the process.

Infrastructure investment provides a powerful combination of above-average secular growth and long-dated investments with stable cash flows and income streams. The fact that demand for infrastructure is consistent means it is also largely uncorrelated to the ups and downs of the broader economy. That makes it a useful point of diversification for investors.