Turning this Global Crisis into Big Opportunities

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Shiver me timbers!

I told you about a stock called Phoslock Environmental Technologies Limited [ASX:PET] back in May. It’s gone up another 130% since.

PET treats polluted waterways.

Please don’t rush and buy it now.

I bring it up because it highlights what consumers and investors are waking up to right now: The world has a big water problem, in multiple ways.

For example, India is facing a major problem and will continue to do so for the foreseeable future.

Shiver me timbers!

I told you about a stock called Phoslock Environmental Technologies Limited [ASX:PET] back in May. It’s gone up another 130% since.

PET treats polluted waterways.

Please don’t rush and buy it now.

I bring it up because it highlights what consumers and investors are waking up to right now: The world has a big water problem, in multiple ways.

For example, India is facing a major problem and will continue to do so for the foreseeable future.

Parts of India are facing devastating droughts.

If you thought the Sydney droughts were bad, consider that half the country — around 600 million people — are now living in water-stressed locations.

In fact, The Wall Street Journal suggests that demand for water will be double the country’s supply by 2030.

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One third of the country’s agriculture sits right in the middle of the impacted area. It’s an easy bet to say that problems around this can only compound.

You might not be sure how this relates to you as an Aussie.

Opportunity knocks. India has no immediate or obvious solution…

Blame the unplanned cities

You may be wondering how India got into this position.

Well, I did some digging and it appears India has the opposite of China’s problem.

China has centrally planned, neat cities that are complete ghost towns

India has, well, complete cities that were totally unplanned and teeming with people.

What do I mean by an unplanned city?

It’s a city that wasn’t built with sewerage, water or even direct access to roads in place, or catered for in any way previously.

Indian newspaper DNA (Daily News and Analysis) covered this topic a while back.

It said Mumbai is among the most populated unplanned cities globally. Mumbai today has 18.41 million people!

I don’t doubt it. Between 1990 and 2015, Mumbai had four times the population of the average city worldwide.

The problems around an unplanned city don’t end there. It can cause problems with regard to delivering services and facilities in the city.

And for India, the most obvious problem right now is the lack of water.

I could show you an image of this situation for you to see how dire it is.

But I’ll spare you the heartache… It’s not just a matter of money — it afflicts the basic necessities of human life in India.

The obvious opportunity

Of course, the last thing I’d want to do is end this update on a low. And as we say, if there’s a bull market, we’ll find it.

That’s exactly what we’re going to do. Because after all, every problem invites creative entrepreneurs and businesses to come up with solutions.

This is how capitalism improves our world.

We can dig around for companies that are working to solve the world’s water crisis…or treat polluted waterways, like PET.

Right now, it’s unknown how India will solve its water crisis. But people in India need access to fresh water.

Here’s what I’m doing here at Profit Watch.

I’m watching this development and looking for companies that could help solve this issue…and benefit from it as well.

One stock you might like to keep an eye on is Fluence Corporation Limited [ASX:FLC]. It’s working on water projects all over the world.

Solving a major problem suggests a big payoff for any company that can do it.

Just look at how the stock I mentioned above — PET — took off recently…

Source: Optuma

If only all stocks behaved this way! By the way, you might be surprised to know that PET only had a market cap of $237 million back in May.

It’s a tiny company compared to the big market behemoths like BHP and CBA.

If you want to learn how to profit from small-cap companies with only a fraction of your portfolio, I encourage you to click here.

Until next time,

Jim Rickards Signature

Jonathan Evans,
Analyst, Profit Watch

PS: Don’t forget to check out my latest video, available for free on our YouTube channel. I got a lot of feedback on last week’s effort. Check it out here.

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