Infrastructure 2025: Resilient Opportunities Amid Trump-Era Volatility

This report, authored by UBS Asset Management’s Infrastructure Strategy team, examines how President Trump’s first 100 days and his bold policy shifts shape infrastructure investing. Despite short-term turbulence, infrastructure remains a defensive, inflation-hedging asset class with strong long-term prospects.

Key Insights:

• Stagflation Favorable: Infrastructure historically outperforms in high-inflation, low-GDP environments—conditions likely under current US policy.
• Trade and Onshoring: Tariffs and reshoring drive domestic transport and manufacturing demand, but global trade assets face headwinds.
• Energy Divergence: Renewables face policy uncertainty yet remain cost-competitive; meanwhile, oil/gas growth is plateauing.

While short-term risks persist, diversified infrastructure portfolios are poised to benefit from inflation protection, secular trends (AI, reshoring), and monopolistic pricing power. Discover where the smart capital is flowing.