What Could Biden’s New Infrastructure Plan Mean for Investors?

After coming through on his first promise to deliver much-needed financial relief to a nation still riddled with high unemployment, President Biden is following through on yet another promise he made along the campaign trail.

Much like the stimulus bill passed earlier this month, the president’s latest announcement also comes with a large price tag, and the corresponding tax hike many have been dreading. But looking past the taxes, this could open up some big opportunities for investors.

Today, Biden unveiled an infrastructure spending package worth more than $2 trillion, which will be covered in part by increasing the corporate tax rate to 28%, according to administration officials. The White House said the tax hike, combined with measures designed to stop the offshoring of profits, would fund the infrastructure plan within 15 years.

Per CNBC, a rough outline of the proposal includes:

  • $621 billion into transportation infrastructure such as bridges, roads, public transit, ports, airports and electric vehicle development
  • $400 billion to care for elderly and disabled Americans
  • More than $300 billion into improving drinking-water infrastructure, expanding broadband access and upgrading electric grids
  • More than $300 billion into building and retrofitting affordable housing, along with constructing and upgrading schools
  • $580 billion in American manufacturing, research and development and job training efforts

There are already a host of popular stocks and funds with exposure to both energy, building, materials and, generating the buzz, which include:

We’re taking energy ETFs like the Invesco Solar ETF (TAN), Invesco WilderHill Clean Energy ETF (PBW), and ARK Innovation ETF (ARKK) and iShares Global Green Energy (ICLN). As far as infrastructure goes, names like Global X US Infrastructure Development ETF (PAVE), Chicago Bridge & Iron (CBI) and Illinois Tool Works (ITW) could also see major growth.

Originally published by CNBC.com

Add Comment

Market Overview

Leave a Reply

Your email address will not be published. Required fields are marked *