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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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Biden's Infrastructure Bill

Chances of it passing - 20%
Why - Democrats' are not united & few Republicans will keep Democrats'/Biden engaged and vote NO when it comes to voting.
What I plan to do? Sell my infrastructure investment in coming weeks, they have already appreciated well in HOPE of the bill passing (priced in).


  • Just wondering, do you have any facts or inside knowledge regarding your claim or is this just your opinion?
  • msf
    edited July 2021
    they have already appreciated well in HOPE of the bill passing (priced in)

    While your particular fund may have gone up well, the infrastructure category as a whole is up "just" 8.19% YTD (using M*'s basic fund screener, Infrastructure category, reading the category average at bottom of results tab). This compares poorly with most broad based categories.

    In comparison, the same tool reports average YTD returns of:
    Large Blend: 16.68%
    Large Growth: 14.31%
    Large Value: 18.17%
    Mid Cap Blend: 16.98%
    Mid Cap Growth: 10.94%
    Mid Cap Value: 20.70%
    Foreign Large Blend: 9.39%
    Foreign Large Growth: 7.22%
    Foreign Large Value: 11.77%
    Foreign Sm/Mid Blend: 13.21%
    Foreign Sm/Mid Growth: 8.50%
    Foreign Sm/Mid Value: 17.14%

    The three five-star infrastructure funds have done a bit better YTD, but still not better than the average fund in most of these categories:
    AIAFX: 11.51% (2/3 foreign)
    JEEDX: 11.12% (5/9 foreign)
    GLIFX: 10.92% (5/6 foreign)

    The adage may be "buy the rumor, sell the news", but judging by these figures, rumor hasn't stimulated infrastructure stocks, relatively speaking.
  • Seems to me, the investment thesis for infrastructure based on this federal bill, in part, hinges on how monies will be prioritized and distributed IF the bill passes. My observation is that innovation and cost-efficiency is enhanced when private entities and state/local governments oversee the targeting. For instance, in my area EV charging stations are proliferating as private businesses and local governments seek to attract and retain leisure and commerce dollars based on demand and not because federal dollars complicated by central control are available.
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