In an insightful post on the Freakonomics blog last week, economist Steven Levitt, co-author of Freakonomics, dissects a report that claims pesticides found in the water in Indiana have resulted in the poor performance of students on standardized tests if those students were conceived between June and August, when pesticides are at their highest levels.
Levitt argues that the authors of the research paper did not consider the fact that children born during those months might be relatively young for their grades, which could affect their performance on the tests. Perception is often reality in the stock market, and if people have begun to worry about pesticides seeping into the water in the U.S., then it's time to start looking at the clean-water stocks. At Stockpickr, we've set up the Freakonomics: Clean Water Stocks portfolio in order to track what is, in fact, a global phenomenon. Worldwide demand for clean water is expected to double over the next 20 years, while the actual supply of water available to people could potentially remain stagnant. Pollution and other environmental issues can create potential pandemics as filth and disease spread. While Indiana's water supply might actually be safe, the rest of the world could have cause to worry. That will give ample reason for the revenue and earnings of the companies in the Clean Water portfolio -- and the names I mention below -- to ramp up quickly.| Which stocks do you think will benefit from a rise in demand for clean water? Answer Here |
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