There are sound arguments to invest in global infrastructure, but care is needed. Buying assets during booms rarely succeeds, particularly if investors have a short-term outlook.
Hype abounds about Australia’s infrastructure boom and $58 billion project pipeline. But this is small compared to the global outlook. Up to $US40 trillion of infrastructure investment is needed worldwide over two decades, forecasts alternative-assets researcher Preqin.
Population growth, climate change, new technology and emerging markets will drive unpredecented infrastructure spending.
