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In our 2025 infrastructure outlook, we argued that the macro backdrop is positive for private infrastructure, and that the 2025 edition of our report is the most bullish one we have written in the last three years. That positive sentiment may feel off the mark after the first few months of 2025, especially with volatility across the global markets due to uncertain policies under the new Trump presidency.

100 days have passed since President Trump’s inauguration. During this time, there has been a flood of policy announcements – global tariffs, energy policies, AI, defense etc. As infrastructure investors, the obvious question is: how should we react to these daily headlines? The simple answer is – we try not to.

Infrastructure is viewed by many as a safe haven asset class. Its underlying investments provide essential services, are more defensive in nature, exhibit monopolistic characteristics, and have multi-decade useful lives. Infrastructure has already demonstrated resilience during periods of economic uncertainty – and this time is no different.

On a macro level, markets are expecting an increase in inflation and a decrease in GDP growth. This combination is actually relatively positive for private infrastructure, which has outperformed listed equities significantly under this type of stagflation scenario.

On a micro level, some sectors may face near-term headwinds. For example, those that are more GDP sensitive or rely on foreign equipment will be impacted. However, short-term risks also create opportunities, especially for assets that benefit from strong pricing power, inelastic demand, and secular tailwinds. Infrastructure also includes a broad set of industries that are highly diversified.

In this report, we analyze the impact of President Trump’s key policies on infrastructure, especially highlighting less obvious aspects and second-order effects. In our view, the recent market turbulence only strengthens our conviction that infrastructure is the ideal investment during times of uncertainty.