Getting Thirsty Yet?
Most of the attention of the average investor has been on either oil or metals during the last three years of this commodity boom. However it is possible that a new player may soon take centre stage in this sector. With the global climate heating up, substantial changes in water resources are being triggered. Here are a few ‘wet’ facts on something we have always taken for granted.
Nearly 40% of the world’s population does not have access to clean water or sanitation. By 2025 there will be an additional 3 billion people on the planet who will require 20% more water than is currently available. Half of the world’s rivers and lakes are so polluted that they would require treatment to provide drinkable water. Many municipal water systems in North America have been in place since World War 11. The Population Institute says that the global demand for fresh water exceeds the supply by 17% already. And the list goes on.
I have recently noticed an increase in available investment vehicles that are based on our most vital resource. Opportunities are springing up in water plant design and construction, desalination, waste treatment, and distribution systems. When you have a scarce natural resource the law of supply and demand kicks in and the price is going to go up. The stocks of individual companies in these areas have soared. Also new products like exchange-traded funds, indexes, and closed-end funds have been assembled. Once again Canada is well positioned to make money.
[newsletter]
LinkedIn
