Market
Memos from Howard Marks: Shall We Repeal the Laws of Economics?Infrastructure assets provide the essential underpinnings of the global economy, moving people, goods, commodities, and data to where they are needed most. The category is broad and varied: It includes everything from roads and bridges to ports and airports, utilities, and power transmission, as well as pipelines, processing and storage facilities -- and it is evolving as new technologies and needs emerge, such as renewable power and data.
The world is in the midst of an “infrastructure super-cycle,” marked by major efforts to modernize infrastructure. We believe this trend has enormous implications for the global economy, as well as being a significant opportunity for investors.
Infrastructure investments can help strengthen portfolios, potentially providing growth, income and inflation protection. It can be accessed by both publicly traded equities and through the private markets. Each have different traits and features, and it is important for investors to understand the benefits and considerations of both and how each could impact a portfolio. Considerations include:
We believe investors can benefit from having exposure to infrastructure in their portfolio, accessing via public or private markets. Of course, how an investor incorporates the asset class depends on their individual goals, liquidity needs, investment time horizon and risk tolerance for navigating the markets’ ups and downs.
To learn more, read “Public and Private Infrastructure: Two Paths to Essential Assets.”