Virtually every company in the S&P 500 will profit from the US shale gas revolution. Nick Ford, manager of the CF Miton US Opportunities fund, explains why he is investing in welders, banks and housebuilders.
The US shale gas revolution has received substantial media coverage over the past year, with two of the three largest shale plays in Texas. The effect on the economy and related businesses has been extraordinary. Texas GDP growth in 2012 was 4.8%, versus the US national rate of 2.5%. The unemployment rate in Texas in March 2014 was 5.5%, versus the national rate of 6.7%. The renaissance of the US oil industry has added around 1.5 million jobs in the last few years. This backdrop has implications for a number of US companies but, importantly, not just those in the energy business. I...
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