How to play the coming infrastructure super cycle, according to Morgan Stanley


Cement is laid on the San Joaquin River viaduct portion of the high-speed rail line being built in Fresno, California, on May 8, 2019, amid ongoing construction of the railway in California’s Central and San Joaquin Valleys.

Frederic J. Brown | AFP | Getty Images

The materials sector could be set for a “super cycle” unlike anything seen in the U.S. since the 1950s – if the Biden administration is able to drum up support for a massive infrastructure bill, according to Morgan Stanley.

A significant infrastructure bill would catapult demand for key building materials, such as cement, as any future proposals are expected to prioritize repairs to existing roads and bridges before turning to new, more innovative projects.

“US infrastructure investment has run US $1.25 trillion below trend over the past decade. An infrastructure deal could set the stage for a Super Cycle, especially in cement, with beneficiaries re-rating,” the Morgan Stanley team wrote in a 76-page note to clients.

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