Consider the Infrastructure Sector as Global Growth Slows

As investors were caught in the throes of May’s volatility, they were seeking quality oriented assets to shield themselves from the wild swings in the prices of U.S. equities. As global growth remains a concern, investors can look to sector-specific plays–one of them being infrastructure. “One market segment that has performed remarkably well of late—and one that may continue to perform well given the backdrop of potentially slowing growth—is infrastructure,” wrote Kieran Kirwan, Senior Investment Strategist at ProShares. “These stocks provide the essential transportation, energy, water and communication elements that allow our society to operate. Most people by now recognize a huge need exists for more infrastructure investment. And many are speculating that one item both sides of the aisle in Washington, D.C., may ultimately agree on is an infrastructure spending package.” One of the advantages in infrastructure is that regardless of what the global economy is doing, it’s a necessity. Furthermore, it’s less prone to the cyclical movements of the economy, which makes it a viable alternative as a defensive play.