Will Infrastructure Spending Impact Chinese Stocks?

Will Infrastructure Spending Impact Chinese Stocks?

An infrastructure package would cast a wide net across the U.S. markets. Will it affect investments beyond our shores? Chief Investment Officer Jim Lowell delved into the wide-ranging impact of infrastructure spending in our recent webinar,* Inflation, Inoculation and Infrastructure: Defining the New Normal.

Please enjoy the excerpt below and click here for the full webinar replay to hear more. 

* * * * *

Jim Lowell:

China continues to manufacture virtually every piece and part of anything to do with alternative energy, whether it’s solar, water or wind. So, we certainly have a competitive relationship and potential advantage down the road relative to China, but right now it should be a boon to Chinese manufacturers if this massive infrastructure spending bill gets passed.

We’ve cast our eye to China—and not just in a theoretical way. It’s the second largest economy and together the U.S.-China duopoly is one very powerful economic force. And we know that China’s consumer-driven economy continues to grow as their industrial economy, and certainly their agrarian economy, continue to get winnowed by that burgeoning consumer class, which may number in the billions, not just the hundreds of millions like our own or like that in India.

China is an area where, despite all of the existential issues of dealing with the kind of government that China has, could in fact help pave the way for some pretty interesting investment opportunities. One of the management teams that we have high regard for has shown their ability to really think through the best ways for investors to engage in China, something that we are paying very close attention to.

* * * * *

Click here for a replay of Inflation, Inoculation and Infrastructure: Defining the New Normal. Please contact us at (800) 492-6868 to learn more about comprehensive wealth management solutions.

*Webinar recorded after the market closed on Wednesday, April 28, 2021.

This material is distributed for informational purposes only. The investment ideas and opinions contained herein should not be viewed as recommendations or personal investment advice or considered an offer to buy or sell specific securities. Our statements and opinions are subject to change at any time, without notice and should be considered only as part of a diversified portfolio. Mutual funds and exchange-traded funds mentioned herein are not necessarily held in client portfolios. Data and statistics contained in this report are obtained from what we believe to be reliable sources; however, their accuracy, completeness or reliability cannot be guaranteed.

You may request a free copy of the firm’s Form ADV Part 2A, which describes, among other items, risk factors, strategies, affiliations, services offered and fees charged.

Past performance is not an indication of future returns. We do not provide legal or tax advice, nor sell insurance products. Tax, legal and insurance information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice, or as advice on whether to buy or surrender any insurance products. Always consult an attorney or tax professional, or licensed insurance professional regarding your specific legal or tax situation, or insurance needs.

© 2021 Adviser Investments, LLC. All Rights Reserved.