Mario Gabelli on infrastructure sector
Mario Gabelli believes infrastructure companies will play a key role in the current investment scenario. After the US election (SPY) (QQQ), he said that infrastructure could perform well during Trump’s presidency.
He also said on April 28, 2017, in an interview with CNBC, “Infrastructure is important because it helps fiscal stimulation. It offsets monetary policy. It helps the jobs in the middle of the country. It helps everyone.” Read, Mario Gabelli Believes Infrastructure Spending Will Create Jobs” to learn more.
Mario Gabelli’s stock picks
Mueller Industries (MLI), United Rentals (URI), and HERC Holdings (HRI) are some of Gabelli’s top infrastructure plays. He believes these stocks could see strong growth, as the US economy is likely to see significant investments in infrastructure. His firm has made a decent investment in all the above stocks.
According to the institutional ownership report, Mario Gabelli’s GAMCO Investors is the fourth-largest investor in Mueller Industries with 3.8 million shares, and Gabelli Funds is the seventh-largest investor with 2 million shares.
Mueller Industries is mainly engaged in bridge and road construction. United Rentals (URI) and HERC Holdings (HRI) are mainly engaged in construction equipment rentals. If infrastructure spending improves, we could see huge growth in the industrial sector (XLI).
The Industrial Select Sector SPDR ETF (XLI), which tracks the performance of the industrial sector, rose nearly 6.4% on a year-to-date basis as of May 19, 2017. Morgan Stanley’s Mike Wilson said in a recent interview that both tax reforms and tax cuts could have a significant impact on the industrial sector. The industrial sector also posted strong earnings growth in 1Q17. The sector makes up 10.2% of the S&P 500 Index (SPY).
You may be interested to read, Morgan Stanley: S&P 500 Index Could Touch 2,700 in Next Year.