There is nothing like a 108 degree day to make me think of water. The recent U.S. equity market pullback got us looking for logical investment opportunities and water came to mind once again.
Take a look,
“For U.S. investors, accustomed to abundant and free water, getting used to the idea of water as a commercial commodity takes time. Analysts expect water to evolve into a widely traded equity over the next decade.” ~Karen Hube (Worth)
Population demands will likely make companies specializing in conservation and conveyance very important. Investing in utility companies with this expertise may be appropriate at this time.
A minute percentage of the earth’s water is potable. Barbara Reinhard, chief investment strategist, at Credit Suisse, predicts that desalination companies will “soon be among the fastest growing in the water sector.”
The search for green-energy also leads to water. Hydropower is a viable option with much government support and technology that is improving.
Interesting fact: “In western U.S. states, water rights are owned separately from land rights. This quirk can be traced back to the Homestead Act of 1862, under which settlers had to occupy land for five years before they were granted ownership, but in the meantime they owned water rights.” ~Karen Hube (Worth)
The wealth creation opportunities centered around water are numerous. Please contact me to discuss further and learn how you can add this exposure to your portfolio. Investing in the water sector, or any sector, does involve greater risk and volatility than a more diversified portfolio due to the narrow focus.
Until next week,
Susan R. Linkous