Why Paying Attention to Government Stimulus is Important

In early October, the Canadian government announced additional stimulus measures, including infrastructure spending and enhancements to the country's Covid-related stimulus response.

These announcements may seem to be non-issues for most investors. However, in this article, I'm going to discuss the reason why investors ought to pay closer attention to such announcements.

The infrastructure announcements, though relatively small in proportion to the overall amount spent by the government on the coronavirus response, is important for investors interested in investing in companies that may benefit from such spending.

As I've mentioned in the past, infrastructure companies such as Brookfield Infrastructure Partners (TSX:BIP.UN) and pipeline operators and energy infrastructure names could see a boost in such an environment.

With job pressures likely to be a catalyst at four additional stimulus spending on infrastructure and other sectors of the economy, investors ought to take into consideration such programs and factor these stimulus measures into the stock price analysis one does on corresponding companies.

I would encourage investors to add companies that may be in favour if stimulus spending picks up to their watchlists accordingly.

Invest wisely, my friends.