The Biden Administration recently released a Fact Sheet of the American Jobs Plan.
Here’s a summary of key expenditure areas and what this means for particular stocks and sectors:
Fix Highways, rebuild bridges, upgrade airports and transit systems:
Good demand for steel, concrete, building materials.
Stocks to follow (tickers given)
$X - US Steel
$MT - ArcelorMittal
$FRD - Friedman Industries Inc
$ATI - Allegheny Technologies Inc
Deliver clean drinking water, renewed electric grid, high-speed broadband
$NOK, $VZ, $CSCO - potential 5G play, amid US-China tensions
$DUK, $NEE, $XEL - the best electric utility stocks going by fundamentals. An equal allocation to these should be good.
Train Americans for the jobs of the future:
$AI, $PLTR, $IBM, $INTC - I really like these stocks, and I think their combination fits well within this theme - a mix of hardware knowledge and software & implementation expertise.
Create Good Jobs Electrifying Vehicles
$UBER, $MSFT, $TSLA, $GOOG
If you thought the EV boom is over, think again - there’s no limit to the amount of money the fed can print and we all know who runs the fed. This government is capable to printing trillions to ‘revive’ US Industrial production, a good chunk of which will go to those at the top of the pyramid - hence these picks.
Replace 100% of the nation’s lead pipielines - Water Infrastructure
Good to see some money going towards water infrastructure. The Biden Administration shall allot $45 billion to the Drinking Water State Revolving Fund and in Water Infrastructure Improvements for the Nation Act (WIIN) grants.
Key stocks that I think would benefit:
$XYL - Xylem Inc
$AWK - American Water Works
$AWR - American States Water Company
Any stocks that I missed out on? Let me know in the comments!
Not investment advice. Do your own due diligence before investing. Your capital is at risk when you invest.