Welcome to Thoughts on the Market.

I'm Michael Zezis, Head of Public Policy Research and Municipal Strategy for Morgan Stanley.

Along with my colleagues bring you a variety of perspectives.

I'll be talking about the intersection between U.S. Public Policy and Financial Markets.

It's Wednesday, April 14th at 10.30 a.m. in New York.

This week, we circle back to the debate about infrastructure spending in Washington, DC.

Last time we focused on the impact of how the plan would be paid for, namely the impact

of deficits and tax increases.

Today, we focus on something a bit simpler.

What sectors of the stock market fundamentally benefit from this plan pick up and government spending?

To answer this question, we just follow the money.

One obvious place to look is that cement and steel companies.

With a plan to spend about $1 trillion on transportation, water, and affordable housing,

that's a lot of steel and cement that will be put to use.

No wonder our colleagues who cover these sectors have now started referring to this

as the beginning of an infrastructure super cycle that could over time lead to about 200 million

tons of cement being consumed.

Another area that benefits is the clean energy sector, something recently highlighted by utilities

and clean energy analysts Steven Bird.

The White House's infrastructure plan proposes extensions of key tax credits for the sector,

new tax credits and methods for developers to immediately realize their value,

and over $170 billion to support the development and production of electric vehicle technology.

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