The election cycle is in full swing and with a lagging economy looming large as an issue, President Obama has come out with his own package of proposals to get the economy and job numbers moving in a more favorable direction. One of the centerpieces of the program is another boost in infrastructure spending.
Assuming that the President can get this package through Congress more or less intact (and that is no guarantee), it is worth considering the investment consequences. If billions and billions of dollars work their way through to roads, transit systems and other public works projects, can infrastructure stocks finally get moving in a more positive direction?
The Size of the Bid
Although the details will almost certainly change as bills are debated and amended, President Obama proposed as much as $140 billion in infrastructure spending, with possibly $50 billion being put on a so-called "fast track." The reasons to do this are pretty familiar - the projects themselves will put people to work (both in construction and related industries like steel and concrete) and better infrastructure has typically correlated with improved economic performance.
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