Renowned Wall Street investor Steve Eisman, who became known for his correct prediction of the mortgage market crash in 2008, is now betting big on infrastructure, Business Insider reports.
As an example, he cited the shares of one of the utility companies, which have risen 34% since the beginning of the year due to increased demand for infrastructure projects in the United States.
Despite the impressive growth of shares of large technology companies at the beginning of the year, Steve Eisman is not a fan of this particular sector, preferring to focus on other areas of the market.
"If someone would give me their money today, I would diversify my investments. For example, have you noticed how deplorable the electricity grid is in the United States?" - he said.
According to Eisman, green modernization initiatives, which are actively supported by local and federal governments, will create significant investment opportunities as the growth in electricity demand will be stimulated by the spread of electric cars, which will require the reconstruction of the electrical grid.
It is estimated that it will take about $200-300 billion to improve the electrical grid in the United States, which is a huge sum. Quanta Services (NYSE:PWR) Public Utilities shares are currently overvalued and trading at around $186, up 31% YTD and 450% YTD.
Eisman is betting on expanding and modernizing the grid, not tech stocks, which could struggle as interest rates rise. He calls for attention to green technologies, infrastructure and the transfer of production inland.