Water, a basic necessity

How many things do we do that requires the use of water? Can you go a day without it? These are the reasons why many believe that water is the next oil. In certain third world countries, populations are growing due to the area's vast resources. Many of these places still do not have the proper water infrastructures for safe and clean water. The more people depend on these commodities (oil, copper, gold, silver, steel, coal and natural gas, to name a few) the more populations will sprout up in rural and impoverished areas. These areas need the basic necessity of clean water, not only to drink but to bathe, clean clothes and refine these materials. This, coupled along with growing population and the fact that nearly 1/6 of the population already does not have sanitary water, is a reason why clean water will be in high demand in the coming years.

This means there is a great opportunity in water cleansing and infrastructure companies in the coming years. Although it is uncertain when these companies' stocks will reflect this need, we are very interested in getting in now, before the actual realization of it happens. We all know it will, but just like oil, it did not rapidly increase in value until there was a limited supply along with international control. Unlike oil, we know the set amount of water and know it is a resource we cannot live without. We can find new ways to take the place of the things oil does for us, thus eventually diminishing its value. With water, we know the amount we have and we know we can reuse it with the right procedure.

All we know is, that in the future, water will finally be recognized as a resource we need to invest in. Not only to ensure that the world's population has clean water to drink, but also enough clean water to use, as we all do on a daily basis. When will the rest of investors and government agencies realize this? We are not sure, but we do know the need is there. Therefore, we are looking for a long term play into a water ETF.