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So many -- of anything consider investing in -- because it's actually one of the most common commodities.
The -- or not the world's growing population and food demand may lead to a scarcity of it.
And -- shortages build there's actually money to be made in what some are calling the new liquid gold.
Joining us now Steve Hoffman founder of what are tech capital Steve thinks your being with us some -- some kind of really on this -- -- kind of -- -- -- but.
We have a water shortage don't we.
Yes we do Tracy.
The reality is we do have water shortages.
But from there gets a very complicated on a planetary scale.
And water can be considered ubiquitous we have the same amount of water that we have billions of years ago.
But when you look at water as a resource it gets murky for example surface water is replenish a -- while ground water is -- -- So it depends upon the type of -- water resource that you're looking out.
Right and then with the growing food demands unique and farmers need water to farm.
People need water to drink an undeveloped countries -- that while there's maybe it's ubiquitous the demand for it in all different places in sources is what's growing.
That's right it's it's the over appropriation.
Of -- easily accessible surface water that is causing the problem.
For a variety of different demands.
Mean Jackson think we'll get to a point where they're -- there will be a scarcity of border.
Well there certainly space showing temporal scarcity is now on the challenges we have to you.
Find better mechanisms to -- use water recycle water seek alternative supplies.
And do more along the lines of water resource sustainability so that we don't end up in any more dramatic.
An and that's what it's all about we we have global leaders talking about this these days it's odd kind of about our infrastructure -- -- it to your point.
Getting the water cleaning it did -- and getting it out is really our big problem.
And we have an enormous so water infrastructure spending gap we have not spent the resources necessary to keep that.
In a state.
Condition that -- You know meet the demands going for -- there be agricultural.
Drinking water commercial.
Okay so not a big question is -- -- make money off this because clearly there's somebody out there doing a lot of work.
Is it the companies that are purifying the water or is it more -- the infrastructure play.
Well it really is a multifaceted problem and that does prove difficulty in translating the fundamentals down to an actionable investment strategy but I focus on.
Several key areas one is treatment technologies because as you mentioned that is.
Not going to go away we need to find new and innovative treatment technologies to meet the different demands that are placed upon it.
And infrastructures a big area that I think we need to look at the less capital intensive infrastructure as well I -- the analogy of the Smart grid on the energy side.
Actually you've picked a few stocks for us -- dial -- if I'm seeing that correctly.
Is XYL and then they see that as an.
Structure story isn't it.
Well it's more -- -- it diversified water company it's the spin off of ITT's water business.
And they are well positioned in a number of different sub sectors so we can almost be viewed as somewhat of a proxy for the industry itself.
AG on energy recovery energy recovery actually kind of S&P global water index.
I think many people don't realize that there is an S&P water index.
And the fun basically keeps track of it.
That's right BE TF tracks the underlying S&P index and so.
You know basically it's going to performance is gonna depend upon the ability of the underlying index -- sufficiently track exposure to the water industry.
The the -- and heat Warner index has actually almost the tracks are real old S&P 500 so.
Warner is secretly doing very well would you buy this Guggenheim -- -- global water index right now well I.
Think you know at this point -- as you mentioned it does track very closely the industrials so there is some correlation issue there.
I prefer to have a combination -- core group of water stocks.
Supplemented with a water ETF such as can be at times.
Steve Hoffman thank you for entertaining me and my little obsession with this water issue we have here -- what are tech capital -- since -- Thank you --
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