TT - PAVE: AI Luster Loses Steam Among U.S. Infrastructure Plays (Rating Downgrade)

2024-06-11 01:50:58 ET

Summary

• Global growth estimates for 2024 are increasing, but election risk is causing volatility in some markets, with infrastructure firms showing some weakness.
• The Global X U.S. Infrastructure Development ETF has seen a surge in assets under management, but its valuation and momentum are concerning after the big rally since Q4 2023.
• PAVE has high exposure to cyclical sectors and has endured relative weakness recently, but bullish seasonal trends may support near-term price action.
• I highlight key price levels to watch as momentum wanes on PAVE.

Global growth estimates for 2024 continue to be ratcheted up. Is it going to be a ‘soft landing,’ ‘hard landing,’ or even ‘no landing?’ Does it even matter at this point? The new volatility catalyst appears to be election risk. We’ve seen equity markets move in Mexico, India, and now France with the US general election less than 5 months away. ...

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