How to catch the inflation upside with infrastructure
The world is currently experiencing a period of very strong global economic growth, with productive economies reopening and vaccine rollout. This has been a product of the fiscal stimulus and monetary easing we experienced through 2020 in an attempt to keep the economy afloat. But with this extra money circulating comes natural concerns.
"Inflation is emerging, we are seeing signs of this all around the world at the moment. The US inflation number was at 5.4% in June; the fastest inflation growth in 30 years... Bloomberg said that the word 'inflation' was mentioned in 87% of the earnings calls for the S&P500 companies so far... In 2020, the equivalent number was 33%"
Join me and Greg Goodsell, Global Equity Strategist & Principal at 4D Infrastructure, as we discuss why 4D is looking forward to an inflationary environment in the global recovery; and how COVID is contributing to M&A activity in the listed infrastructure space.
- 1:21 – How stimulus has led to strong global economic growth; but also inflation.
- 3:35 – The two current schools of thought on inflation levels (and which one 4D subscribes to).
- 8:37 – How 4D can use infrastructure’s two distinct sub-sectors to take advantage of different points through the economic cycle (including an inflationary environment).
- 13:06 – 4D’s current portfolio positioning to capture the inflation upside.
- 15:22 – How airport passenger numbers are recovering globally as some countries start to ease COVID restrictions.
- 17:49 – Why there has been an increase in M&A infrastructure activity, including the recent consortium bid for Sydney Airport.
- 21:02 – Opportunities for 4D’s portfolio in the US infrastructure spending plan.
Invest across the globe
4D Infrastructure is a Bennelong Funds Management boutique that invests in listed infrastructure companies across all four corners of the globe. For more insights on global infrastructure, visit 4D’s website.
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Sarah has almost 30 years of experience across financial services, including 20 years focused on global listed infrastructure. She is an experienced portfolio manager, having successfully launched and managed several listed infrastructure funds...