Infrastructure Teaser

Hey Influence Traders,


Ah, Thanksgiving Week.


I hope that you’re priming the table talk and loosening the belts.


I’m making a #powermove to the in-laws in sunny Florida.


(I hope it doesn’t devolve into a Trains, Plane and Automobiles experience.)


The Fed


The race for Fed Chairman has come to an end. And the winner is … Jerome “J-Pow” Powell.


President Biden reappointed Powell and named Lael Brainard to be the Vice-Chairman.


Many will argue that with Powell being a Republican, this was a (rare) bi-partisan move by the President to reach across the aisle.


But I think it was a calculated partisan move to win over Joe Manchin.


Manchin is a fan of Powell and Biden needs Manchin to get on board with the Build Back Boondoggle bill. 


It’s 50-50 in the Senate, so every vote will count. Manchin has more questions than answers over the bill, and Biden desperately needs him.


Infrastructure Bill


Last week, President Biden signed the $1.2 trillion infrastructure bill into law


Andrew Giovinazzi and I are looking at securities that will benefit from the infrastructure spending.


While recipients of the money have not been named, we have some clarity on where in the U.S. much of the money will flow …


It  will be given to the states with most of the specific distributions done at the local level.


Some states will make out better than others


      • California, Texas and New York will cash in big
      • Less populous states — such as Montana and Alaska — will get the most money per capita


California will get over $44.56 billion in infrastructure funds, the biggest sum for any state. Highways and public transit will comprise about $34.8 billion of that total.


Texas is the No. 2 recipient with an estimated allocation of $35.44 billion. $26.9 billion will go to highway funds and $3.3 billion to public transit. 


New York is the third largest recipient with $26.92 billion.


While California, Texas and New York will get the largest dollar amounts, Vermont, Montana, Wyoming and Alaska will get the highest levels per capita.


For example, while Vermont, Montana, Wyoming and Alaska will get at least $3,500 per resident, California will get less than $1,250 per resident.


Public transportation spending is a hallmark of the infrastructure bill.


New York, New Jersey and Connecticut will receive $15.2 billion for public transportation, which accounts for 24% of the total allocated to public transportation.


That raised some eyebrows since those states make up just 10% of the U.S. population.


But it simply demonstrates the importance to the economy that the administration puts on the public transit infrastructure in and around New York City.


Louisiana, which suffered billions of dollars in damage from Hurricane Ida, is nabbing just $1.01 billion for bridge replacement and repairs, seventh among all states and about 3.8% of the total dedicated to bridges.


The ripples coming out of DC are laying the groundwork for profitable trades, and our hedge fund strategy is uncovering them for you.


Cutting Through the Noise for You.



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