Supply and demand imbalances exist for a variety of commodities. But only one is essential to life. In this case, we’re talking about blue gold.
We often don’t think about where our water comes from or the many issues facing it. But water, its access, and the ability to ship, store, and clean it are quickly becoming major issues for not just emerging markets, but developed nations as well. Demand continues to rise, while the amount of clean, fresh water is seemingly shrinking.
For investors, this could spell opportunity. Much investment is needed in the water industry, with many governments providing grants and subsidies for the industry. The multi-year spending binge coupled with the sheer need for solutions should help lift the industry for years to come. And in many cases, lift dividends as well.
