Saturday, September 15, 2012

Investing in Water

With all the analysts and investors talking about oil prices right now, I thought I might bring up the next “oil,” so that all you savvy investors out there can profit big time. One of the biggest keys to successful investing is timing, and that means buying when nobody is talking about it, and selling it once your next door neighbor asks you about it.

Investing in water hasn’t really hit the mainstream yet, but right now might be the time to start looking into it. Just recently an MIT Professor warned that water is “the next oil.” According to an article on Seeking Alpha, “[t]he World Water Council suggests developing countries will need $4.5 trillion in water infrastructure investments over the next 25 years,” and in the US alone, we need an additional “additional $23 billion a year over and above current investments (currently about $60 billion) to keep our drinking water and waterways clean and safe.”

In another article that I found by a reliable source, water was given the term “Blue Gold.” “The next decade may see a cartel of water-exporting countries rivaling the Organization of Petroleum Exporting Countries for dominance in the world economy.” The article also stated that the “central problem is that less than 2% of the worlds ample store of water is fresh.”

If you are interested in investing in water, you may want to look into the water ETFs, PHO or PIO; or Tennessee-based copper pipe and valve maker Mueller Industries, MLI, a $1 billion business with a PE of only around 10.

http://tradingrite.com

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