Coming to a planet near you: $57 trillion in infrastructure investments...
Papers were written about the diversification benefits of infrastructure investments as they relate to portfolio management. Management consultancies such as Ernst & Young, McKinsey, KPMG and PwC established infrastructure practices. At the academic level, analysts debated whether infrastructure was, in fact, a true asset class. The consensus, by the way, was that infrastructure is indeed an asset class.
Lest you think infrastructure is "old news," just two weeks ago, the US Chamber of Commerce held it's First Annual Transportation Infrastructure Summit, Let's Rebuild America. Last week, McKinsey released an excellent piece called, Rethinking Infrastructure, which was the inspiration for this slog post.
Regardless of how you slice it, a lot of bridges and roads need to be fixed and/or built around the world in the next several decades! These state report cards on the condition of our infrastructure prepared by the American Society of Civil Engineers bring it down to a local level that everyone can understand. In terms of it's impact and longevity, infrastructure has the potential to be as significant as the demographic (baby boom) mega-trend. That's a powerful locomotive that many have been riding since the early-1980's and one that is still going strong.
In Rethinking Infrastructure, McKinsey's Infrastructure Practice points out that the world will have to spend $57 trillion on infrastructure by the year 2030 just to keep up with projected global growth. The video below provides an executive summary but the entire video is a must-watch. I have also included some PDFs and links to related content at the bottom of this page.
In summary, the global infrastructure story has significant and long-term implications for corporate executives, investors, financial professionals, parents, educators, government leaders, futurists and more. I say, CARPE FUTURO! There is no time like the present to seize the future -- especially if you are in college or early in your career...
Rethinking Infrastructure: Excellent Insights from McKinsey
The entire video (worth watching) can be found on the McKinsey website
Excellent Primer on Global Infrastructure as an Asset Class...
I recently uploaded five of my favorite slide presentations. These will give you a pretty good idea of the work I have been doing over the past 20 years or so. One the most interesting contains the image below. This graph of the Dow Jones Industrial Average (as of late July 2012) shows the timing of a practice management survey I conducted for the Investment Management Consultants Association. As you can see from the annotation below, the survey, which was designed to gauge investment advisor sentiment during the most recent financial crisis / meltdown, was taken in January 2009. The article, in which I summarized my findings and conclusions was written on March 15, 2009 just days off of the market bottom. You may or may not be surprised to learn that financial advisors are similarly affected by the same "behavioral finance" forces as their clients. Please enjoy these first five presentations. I will be adding many more in the weeks and months ahead.
RAMBLE ON, the name of my SLOG was inspired by the Led Zeppelin song with the same name. It also describes the content, which reflects my very random observations about life, work and my endless pursuit of the sublime. See tag list below...
My "Fiscal Cliff" Playlist
"When you realize how little you know, you have become a philosopher."
~ Socrates ~