Did you know that at least 60% of the human body is made up of water?
We simply can’t survive without it. There always has been and always will be a demand for H2O.
Either way, people don’t tend to think of the value that water holds as a moneymaking opportunity. But why not?
After all, Wall Street is totally dependent on supply and demand. So why should the demand for water be treated any differently?
In reality, some of the better performing stocks right now exist within this sector of the market, like Middlesex Water Company (MSEX), which has almost DOUBLED in price since last year!
Let’s dive deeper and see what other kind of profits could be flowing your way.
Before we sink down into all the details it’s important to understand what separates the water industry from just any ole stocks.
As I mentioned, there’s a constant demand for water.
You may be wondering how this even makes sense though, considering the vast majority of this blue planet is covered in it.
First off, out of all this water, only a small percentage is readily available and drinkable.
Water actually happens to be rather scarce nowadays. So as with any other scarcity, the water shortage creates investment opportunities.
Not only is water the source of life, but it can also be a source for portfolio diversification.
On top of that, it’s traded as a commodity. In other words, it’s a raw material that will retain its value no matter what happens.
Just like gold, oil and even coffee, the demand will always be there, which inherently lays the groundwork for “safe” investments.
But enough talk… let’s take a look at a few companies in this particular industry to determine what the real profitability of water is.
Middlesex Water Company (MSEX) was one stock that especially stood out. During 2018 alone, MSEX shares increased more than 80%!
You’d think that after almost DOUBLING in price, Middlesex’s bull-run would’ve died down a bit. However, that doesn’t seem to be the case…
We’re now two months into the new year and MSEX shares have already climbed over 13%!
If that kind of activity keeps up, we could very well have another eighty-plus percent price pump on our hands.
It doesn’t end there though. The industry as a whole appears to be thriving.
If you don’t believe me, checkout the three charts listed below.
Even without any knowledge of technical analysis, you can see that California Water Service Group (CWT), American Water Works Company (AWK), and American States Water Company (AWR) are all moving up and they have been for quite some time now.
Each of these water stocks have rose over 10% since the start of 2019. That’s saying a lot, considering the average return for the S&P 500 can’t even match this value after an entire year.
To say the least, water is a traded commodity that is commonly overlooked, but it’s really an investment opportunity just waiting to happen.
That said, feel free to sift through these companies yourself or take from the ones provided and profit off the never-ending demand of water.
