Investing in water for the next ten years.
Buying Opportunity: $PHO is Oversold H2O Have you thought about how essential water is for the existence of life lately? The bigger question is have you paid any attention to the shortage of drinking water, the droughts, not only in America but all over the world. The shortage of water is important and water scarcity has always been an issue in some countries, but the outlook looks to get worse. The outlook on drinking water is within the next ten years demand will surpass supply by 40%. That is a huge problem. If I am going to invest in a company, why wouldn't I invest in companies that are trying to focus on and fix this issue? If water becomes one of the most desired commodities and cleaning water and providing clean water becomes more important than fuel for your vehicle then you might start thinking about it a lot more. That is what a lot of countries are dealing with already.
In investing money for beginners, I go over why I like Mutual Funds. Lately I have been repositioning my holding to ETFs specific to certain sectors. Investing in water is one of those sectors. My ETF of choice is $PHO. There is multiple water ETFs, but I chose this one based on it having a higher trading volume and I do like the company holding percentages better. This ETFs top ten holding are Waters Corp, Danaher Corp, American Water Works, Roper Technologies, Ecolab, Xylem, Pentair PLC, Tetra tech, Essential Utilities, and A.O.Smith Corp. It holds a total of 36 stocks with those being the top ten. It pays a dividend yield of .26% which is not the reason to buy it but is a plus. Investing in water is investing in an essential part of life that has a dim outlook. These companies and a lot of other water companies are trying to help that outlook.
Now looking at the chart on $PHO, it is oversold and every time it is oversold, I am adding to my position. If you are investing money as a beginner this is a wonderful time to add to your positions or add new positions. If you like a company or ETF the best time to buy is when its oversold, it is like buying it on sale compared to its previous price. Unless something substantial changes I am holding this ETF and adding to it every time it gets to the oversold mark. This is a ten year hold easy with the outlook of the most precious commodity in the world.
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