In our January issue, we made the case for investing in infrastructure funds and ETFs. The case was based on a (for me) glum premise: we can either spend resources minimizing the severity of climate instability or we can spend them trying to live with the consequences of feeding instability. We have collectively decided that we are uninterested in inconveniencing ourselves in an attempt to halt climate change; if you look out at your driveway as see an SUV or manly pickup, the 21st century version of a codpiece, you've don't get to growl about "d***ed politicians on this one. While politicians can ignore climate change (it's someone else's problem, it's not happening, it's natural, it's long off, my 'base' will throw me out of office if I even mention it), they can't ignore the collapsing drinking water systems, toasted towns and flooded shopping districts attendant to climate change. Davenport is building flood protection. California is building "Los Angeles 2.0." Which will cost trillions.
The case for such investments just became stronger: Mr. Trump declared a "national energy energy" to accelerate fossil fuel extraction and consumption, is withdrawing from climate coalitions and promising $500 billion for "AI infrastructure" (which translates to power plants, pipelines and grid upgrades). His Energy Secretary-nominee, CEO of a fracking company, declares "there is no 'climate crisis.' We have seen no increase in the frequency or intensity of hurricanes, tornadoes, droughts or floods." On whole I'm guessing that instability (hence pressure for adaptive infrastructure) will grow as will devotion of the energy sector.
I took seriously the rec to include water infrastructure on the recommended list, and I've been trying (around teaching five days a week) to make sense of folks' choices there. With luck, we'll share a short essay on water funds in February.
Comments
In the same vein, you could stretch the infrastructure theme a little by including an industrial like AIRR, and a little more by including EVX.
My utes are holding up and/or rising ... my renewables are falling, most likely a kneejerk reaction to FOTUS' decrees on 'dirty' energy this week. (Might be a good long-term buying opportunity, though.)
I would think that companies with existing generation capability, regardless of source, would do well in the push for AI, since you can't build a new power plant overnight -- but then again, we're in crazytown, so who knows.