Matt Golab, Elk Grove Investment Advisor asks, "Is Water the Next Bull Market?"

Looking at the age of the countries water infrastructure, the cost of repairs and maintenance, a drought in California and other regions have caused many to wonder where the water market will be heading in 2014.
 
Matt Golab Aaron Matthews Financial Resources
Matt Golab Aaron Matthews Financial Resources
ELK GROVE, Calif. - Jan. 20, 2014 - PRLog -- Matt Golab, Founder and Chief Advisor of Aaron Matthews Financial Resources in Elk Grove, CA discusses a recent article he was reading about the potential in the water market.

Golab goes on, "Recently I was reading Private Wealth Magazine and there was an article titled 'Investing in Blue Gold.' The article talks about water as a part of an investment portfolio and some advisors are viewing the attack on clean water as an opportunity for their clients accounts to grow with stability."

The reason some advisors are beginning to place small amounts of their clients assets into water related positions is that water is usually viewed as uncorrelated to the major market indexes and is usually a defensive portion in an account.

Matt goes on, "You might be thinking about how much of the earths surface is covered by water but the vast majority is unable to be consumed, either because of ice, salt water, or contamination.  Population growth is also causing countries water supplies to be tightened and the fear of droughts is also causing governments to take notice."

According to the National Intelligence Council forecast, overpopulation  and weather-related disasters half of the world could face water shortages in under 20 years. Water is different than other commodities because of how difficult it is to transport and how it has to be transported.

As far as industries go water is the third largest in the world after oil and gas and electricity. Despite the amount of wasted water by consumers the public water and sewer segment is also causing water investments to become more attractive.

In the U.S. alone there is more than 72,000 miles of water mains that are nearly a hundred years old and hundreds of thousands of these mains break every year. Private Wealth Magazine goes on to say "the (U.S.) largest per capita consumer of water in the world, loses 1.7 trillion gallons of water to leaks annually, according to the U.S. Geological Survey.

"Government funds will not be enough to keep the needed repairs and maintenance going on these systems which will cause an increasing demand for private investments," states Mr. Golab

Not only is transportation an issue but water is something that can be manipulated by things outside of a manufacturers control, for example a drought. Right now in California there is a drought that has not been seen for decades. In some areas water restrictions are already in place and it's only January. Some wells in rural areas are running muddy which will force them to have water hauled in causing further difficulties. Water resources and recreations are also being impacted months in advance of the traditional season.

Water will never become a security because of the difficulty in pricing, storing, and transporting but there is the possibility of buying water right or through funds that own water rights. Owning water rights is a very long term investment, while uncorrelated to major indexes it is not something to invest in lightly.

For more information on this topic feel free to call me at 916-509-7227 or email me at matt.golab@aaronmatthewsfinancial.com

Matt Golab was recruited to write a chapter in Tom Hopkins recent book, Victory which became a National Best Seller. Matt also received the Editors Choice Award for his contribution to Victory, not every contributor is selected for this high honor.

Matt is an authority on creating innovative tax and investment solutions to help his clients succeed in their retirement years.  The strategies Matt Golab has established and passed on through successful financial planning with hundreds of clients over the years has launched him into the national spotlight.

He is often featured in Retirement Advisor Magazine, a publication which attracts the top financial planners in the country. Matt has been featured in newspapers around the country passing on the principals for a successful retirement. Golab is often asked by national websites that focus on the education of consumers to present his knowledge on the areas of retirement and retirement income plans. Matt is frequently featured in The Wall Street Journal, CNBC, MSN Money, The San Francisco Chronicle,  Newsweek, TheSmartRetiree, Burlington County Times and appeared nationwide on ABC, CBS, Fox, and NBC as well as USA Today.

Matt has a weekly radio show where he discusses all aspects of retirement planning, total wealth management, and estate strategies. Through his relationship with Retirement Radio Network experts such as David Walker former Comptroller General of the United States, Harry Dent of the H.S. Dent Foundation, John Bogle of the Vanguard Funds and many more have been heard on his show Income Forever.

Golab is the Author of The Consumer's Guide to Planning Your Retirement: Your Guide to Mental Peace and Financial Well Being. Matt Golab continues to expand the geographic reach of his audience and desires to bring his expertise to a nationwide television audience. Matt emphatically states his mission, “I want to change the way Americans view their retirement. They can succeed (stay retired) regardless of what happens in the market." Contact information for Matt is available at his website,

http://www.aaronmatthewsfinancial.com/

Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.

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Page Updated Last on: Jan 22, 2014



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