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Wednesday, 04/18/2018 5:58:16 PM

Wednesday, April 18, 2018 5:58:16 PM

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Every four years, the American Society of Civil Engineers issues a report card on the condition of the nation's infrastructure. In 2013, the country received a sad D+ – something that then-candidate Donald Trump highlighted during his presidential campaign. The recently released 2017 report card is no better – another D+. Clearly the need for an overhaul is there. But what exactly that means, who pays for it and how much should be spent is up for question.

In February, President Trump unveiled his administration's proposal: a new $1.5 trillion infrastructure plan that includes a $200 billion contribution from Washington over the next decade meant to spur another $1.3 trillion in spending by cities, states and the private sector. While it is unclear whether the specific plan will get through Congress – Democrats largely see the plan as falling short and Republicans are largely unwilling to push through another big spending measure – it is apparent that the administration is prioritizing rebuilding infrastructure, as has been expected. (See: Infrastructure Spending: Watch the U.S. Fall behind).

A new focus on infrastructure is encouraging to investors who seek exposure to this niche. (See: How Big Investors Will Profit From Trump's Infrastructure Bonanza.) On Monday, the stocks of major infrastructure companies saw little movement following the news of Trump's proposal, but longer term, those stocks stand to benefit.

It is important to note that infrastructure is an extremely broad category, encompassing transportation, communications, water and electricity – representing hundreds, if not thousands, of equities. Selection is essential to success, since not all "infrastructure" stocks will take off under the proposed spending. (See: Build Your Portfolio With Infrastructure Investments.)