Joining the “ETF Report” with hosts Alexis Christoforous and Kristin Myerson, ETF Trends CEO Tom Lydon spoke to what investors should be expected following the recent infrastructure deal.
Should You Invest In the Global X US Infrastructure Development ETF? gobankingrates.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from gobankingrates.com Daily Mail and Mail on Sunday newspapers.
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A few weeks ago, I named infrastructure stocks “The Best Sector Bet This Year.” President Biden had just introduced a $2 trillion proposal that included a wide range of spending initiatives.
Republicans have counter-proposed an $800 billion spending plan that is narrower in scope. It’s too soon to tell how those negotiations will turn out. However, it is probably safe to assume that some sort of spending bill will eventually be approved this year.
In that article, I used the
iShares Global Infrastructure ETF (IGF) as an example of one way to play this sector. Specifically, I suggested buying a call option on IGF that expires on July 16 at the $45 strike price. At that time, that option could be bought for $2.
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The recent tech swoon might seduce you into thinking now is a good time to load up on names that seemed prohibitively expensive just a few months ago. For example,
Tesla (NSDQ: TSLA) has dropped by a third since peaking at $900 just two months ago.
However, even at a reduced share price of $600, TSLA is valued at 156 times forward earnings.
Amazon (NSDQ: AMZN), down 10% over the past six weeks, is trading at 60 times forward earnings. Those stocks may be a lot cheaper than they were, but that does not make them cheap.
With the stock market at record highs, it is difficult to find growth stocks at reasonable prices. However, there is one sector of the market that appears undervalued to me. Even better, it may be about to get a $2 trillion infusion of cash from Uncle Sam.
S&P 500 punches above 4,000 for first time as Biden targets $2 trillion for infrastructure spending msn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from msn.com Daily Mail and Mail on Sunday newspapers.