The fight is on for clean, safe water.
Sure, more than 70% of our planet is covered in water. However, only 3% is freshwater. Worse, of that 3%, only 1.2% is safe for consumption. Worse, with global communities only exploding in size, the war for water is boiling over – and fast.
Not helping, the U.S. government just declared a water shortage on the Colorado River, and announced mandatory cutbacks. “The declaration of a shortage by the U.S. Bureau of Reclamation has been expected for months and was triggered by the spiraling decline of Lake Mead, which stores water used by Arizona, Nevada, California and Mexico,” reports USA Today.
Orlando just declared a water shortage, with surging COVID cases.
In California, the drought is leading to higher water prices.
“It’s a ‘perfect storm of conditions’ for California’s water, with “worsening supply/demand imbalances, telltale signs of climate change, and a hesitancy by state officials to step up permanent solutions like conservation, water reuse, and desalination,” says Deane Dray, a managing director and multi-industry analyst at RBC Capital Market,” according to Barron’s.
Even Lake Mead is at its lowest level, forcing the Southern Nevada Water Authority to ask that people conserve water. “The water levels at Lake Mead have fallen more than 100 feet in 20 years. The ongoing drought conditions are projected to drop water levels even more in the coming years,” says 8News Now in Las Vegas.
That’s just in the U.S.
It’s all part of the reason water related stocks and ETFs are turning higher. Look at the Invesco Water Resources ETF (PHO) for example. Oversold at $56, the ETF is just beginning to pivot higher, and could retest highs of $59.70 again soon.
Even the First Trust ISE Water Index Fund (FIW) and the Invesco S&P Global Water Index ETF (CGW) are just starting to push aggressively higher.
The post Three Oversold Ways to Trade the Water Crisis appeared first on Morningology.
