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Private Briefingwith WILLIAM PATALON III, Executive Editor
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In last week's State of the Union Address, U.S. President Barack Obama delivered some hints as to where he'll focus his spending over the next four years - signaling some stocks to buy in 2013.
In his speech, President Obama made reference to the critical need for infrastructure spending in the United States. He proposed a "fix-it-first" program to address some of the more pressing needs among our nation's roads, highways, bridges and other areas in need of repair.
We have heard this type of political commentary before as the need for infrastructure repair was a highlight of the 2008 campaign. Deteriorating infrastructure is a growing problem in the United States.
The American Society of Civil Engineers in a recent report expressed concerns that there is critical underfunding for infrastructure programs. They estimate that current U.S. policies will underfund surface transportation, aviation, waterways, electrical grid and sewers by about $1.1 trillion through 2020.
Spending has been delayed at all levels by the recent recession and credit crisis and the nation's transportation , water and electrical systems have declined and are in need of repair and upgrade, according to most experts. The ASCE study estimated that deteriorating infrastructure could eventually subtract as much as $3 trillion from U.S. gross domestic product.
That's why the White House today (Wednesday) outlined a $50 billion infrastructure plan, including $40 billion for "fix-it-first."
This creates a potentially huge opportunity for investors who know the right stocks to buy now.
At some point the money simply has to be spent or our economy and global competitive positions decline to unacceptable levels. The wave of money that needs to be spent will boost revenue for companies that build roads, repair water systems and other vital infrastructure systems. The stock prices of these companies will follow suit and at some point in our future infrastructure stocks will likely become a bubble sector with soaring prices and huge profits.
Smart, patient investors who begin to accumulate these stocks while they are out of favor can make a fortune when the spending tidal wave is finally unleashed.
Here are some infrastructure stocks to buy now to profit from this looming trend.
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