There are some concerns that a divided Congress could create political gridlock, a bad development for business. However, there is one part of the economy that could shine: infrastructure.
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Many infrastructure-related stocks climbed ahead of midterms, supported by the sentiment that they could benefit no matter the outcome of the election. After the election, many are seeing additional upside as a “bipartisan favorite.”
Public companies that could benefit from an infrastructure spending plan include Vulcan Materials, Granite Construction, Jacobs Engineering and AECOM.
President Trump told FOX Business’ Stuart Varney in October that, “Infrastructure is going to be starting right after the midterms and we think that’s going to be an easy one.”
In 2017, the American Society of Civil Engineers (ASCE) issued a report card on America’s infrastructure and gave the country a near-failing grade. Every four years the ASCE grades America’s infrastructure much like how a student receives a grade at school. America’s was a D+.
ASCE isn’t the only group that has critiqued the nation’s infrastructure, in fact, consensus about the poor state of the country’s roads, bridges, tunnels, pipes and other crucial facilities is so unanimous that both sides of the aisle are in agreement.