California water crisis creates investing opportunity

Jeff Macke
Yahoo Finance

Americans have no idea how lucky we are when it comes to water. Even with the drought ravaging California most of us are completely unaware of the depths of the water crisis in the rest of the world. The stats are mind-blowing. 780 million people lack access to clean drinking water. Every 21 seconds a child dies from water-related disease.

As the water crisis moves from something that happens to other countries into the U.S., it’s a decent bet that American corporations will somehow, someway figure out ways to solve the problem at a profit. That’s how capitalism works, after all. The question is when.

In the attached clip Tom Lydon of ETFTrends.com says the time is now. Millions of gallons a year of dirty, treated water gets dumped back into the Pacific every day, explains Lydon in the attached clip. “If you can capture that water and clean it then sell it back to the industries that use it, there’s a great opportunity.”

Lydon says several ETFs play specifically to water. His favorite is the Guggenheim S&P Global Water ETF (CGW). He also likes the PowerShares Global Water ETF (PIO), thanks to it’s heavy focus on water tech.

Water has been the 'next big thing' in investments for a while so be careful jumping in headfirst. Still, for those with the patience and foresight to see the coming storm, water just might be a decent investment idea for the long-term.

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