Hi Everyone,

Once a year, I try to remind investors of the importance of fresh water and how the increasing demand for it is worth understanding. Here is some data for 2013.


Demand for Water
“According to the UN, global water demand will be pushed 40% beyond accessible, reliable supplies by 2030 unless significant headway is made toward resolving the global water crisis.” ~Allianz Global Investors

Companies that provide drilling, runoff water capture, pipelines, pumping stations, equipment for desalination, treatment of wastewater and construction materials may be poised for growth.

Infrastructure is needed for both developed and developing countries as over a billion people already have inadequate access to fresh water.
Increasing Efficiency

” 32 billion cubic meters of treated water is leaked from water-supply systems every day.” ~UN

Efficiency is needed to reduce captial-intensive projects and support using resources more readily available. Firms focused in these area may produce:

Irrigation equipment
Evaporation prevention
Waste and leakage detection
Improved fertilizers
Automation controls

Quality and Technology

“80% of China’s rivers are too toxic for fish – let alone human consumption.” ~World Economic Forum

Governments can regulate but it will be great technology companies solving filtration, monitoring and disinfecting issues.

Final thought: My daughter, Sophia, recently received high marks on an art project depicting these issues. We can all care about this and consider the appropriateness of investing in firms working on solutions. Investing in any sector is more risky than a more broadly diversified portfolio so be sure and seek advice first.

Until next week,

Susan R. Linkous