SubscribeAll Posts Tagged With: "Infrastructure spending"
Stalled Infrastructure Projects: What it Means for Investors
Make no mistake: Government and privately funded investment in public works projects – not bubble inducing, debt-financed consumer spending – will be the guiding light that leads the way out of this recession.
The American Recovery and Reinvestment Act – otherwise known as the “Stimulus Bill” – provides $120 billion to begin to address our nation’s crumbling infrastructure.
It’s the largest infrastructure investment since Eisenhower’s Federal-Aid Highway Act of 1956, which created the U.S. interstate highway system.
Infrastructure investment – under-funded since the 1960s – will be unprecedented over the next three to five years, and let’s face it: the need is huge.
According to…
6Jul2009 | Investment U | 0 comments | ContinuedKPMG: Private Equity Bets on Energy, Infrastructure
Source: GlobeSt, Paul Bubny
Private equity investors, although not foreseeing an economic turnaround until 2010 or later, are betting on the energy sector and infrastructure for the long term, according to a survey conducted by KPMG LLP. Energy topped the list of choices for investment when the market turns positive, while infrastructure was considered the next "meaningful" opportunity by many PE managers.
Shawn Hessing, New York City-based managing partner of KMPG’s U.S. private equity group, says in a release that the survey indicates that "market conditions are making it difficult for PE managers to make projections for their portfolio companies. In addition,…
1Jun2009 | The Energy Report | 0 comments | ContinuedWarning: Hope, Hype, and the Herd
“…most investors tend to project near-term trends—both favorable and adverse—indefinitely into the future.”
That’s what value investor Seth Klarman told a group of investors last February. Klarman, portfolio manager and co-founder of the Baupost Group where he has averaged just under a 20% annual return for 25 years. So when Klarman talks, I pay attention.
But hey, this bit of wisdom was from a speech back in February. That’s ancient history for Wall Street and the masters of the universe apparently already forgot Klarman’s sage advice.
Think about it for a second – “most investors project near-term trends…indefinitely into the future.”
“Most investors” are…
7Jan2009 | Q1 Publishing | 0 comments | ContinuedFrom Eisenhower To Obama: The Firms Poised To Cash In On The New U.S. Infrastructure Revolution
Source: Money Morning
Pack your bags, folks – "There’s no more Wall Street."
That’s the damning verdict from Alan Greenberg, former CEO of The Bear Stearns Cos.
Speaking on Bloomberg TV’s "Money and Politics" show, Greenberg declared that the existing Wall Street investment-banking model is dead.
I’m not sure about death, but the broader U.S. economy is like a 2:00 A.M. drunk, continuing to stumble towards the end of a mind-altering 2008, with little long-term relief in sight. Will it ever find its way home again?
One of President-elect Barack Obama’s most ambitious and large-scale plans quite literally seeks to dig America out of…
19Dec2008 | Money Morning | 0 comments | ContinuedObama’s Talk of Infrastructure Investment Moves Monday Markets
Warning that more pain will precede the positive, President-elect Barack Obama said in a weekend interview and press conference that he plans a massive investment in infrastructure to create jobs and stimulate grounded and long-lasting economic growth.
Speaking at a Sunday news conference and on”Meet the Press,” Obama didn’t specify projects beyond roads, bridges and”other traditional infrastructure.” Nor could he give a price tag. But just his mention of the infrastructure projects was enough to kick start the markets Monday.
Story continues below…
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China Slams Western Financial Firms
China’s $200 billion sovereign wealth fund, China Investment Corp. (CIC), doesn’t plan to open its wallet to foreign financial firms and banks any time soon.
Still mindful of losing about $6 billion of the $8 billion CIC invested in Morgan Stanley (MS) and Blackstone last year, chairman Lou Jiwei not only bluntly rejected the notion of putting the government’s money into banks outside of its homeland, but did so citing an overwhelming fear.
"I don’t dare to invest in financial institutions now," Lou, said today (Wednesday) at a conference in Hong Kong, Bloomberg reported. "The policies of the developed nations…
4Dec2008 | Money Morning | 0 comments | ContinuedBetting on China’s Stimulus Plan
The Chinese government is hoping that a $586 billion stimulus plan will be able to kick-start its economy.
Despite the International Monetary Fund forecasting China’s GDP growth to finish in a healthy range of 8% to 10% in both 2008 and 2009, the Shanghai Composite Index has been punished along with the rest of major global exchanges this year. The index has lost nearly two-thirds of its value since the beginning of the year.
The iShares FTSE/Xinhua China 25 Index (FXI), an ETF that tracks 25 of China’s largest companies, has been thrown for a 54.4% loss year-to-date. The fund has…
12Nov2008 | Oxbury Research | Comments Off | ContinuedMerrill Lynch: Emerging Market Infrastructure Spending Will Surge 80% in the Next Three Years
Merrill Lynch & Co. Inc. (MER) has raised its annual infrastructure-spending estimate for emerging markets by 80%, as developing countries try to keep pace with fast-growing economies and large cash reserves, BusinessWeek reported.
Investment in infrastructure, which the firm sees as the long-term solution to inflation, will rise from $1.25 trillion to $2.25 trillion annually over the next three years. And China, the Middle East, and Russia will account for 70% of infrastructure spending.
The report from Merrill Lynch pointed out that Xstrata PLC (OTC: XSRAY) recently predicted emerging markets would spend $22 trillion on infrastructure in the next 10 years.…
9Jul2008 | Money Morning | Comments Off | Continued
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