The human body is composed of 60% water. Depending on the stage of life, this proportion varies between 50% and 70%. A person can live without drinking water between two and seven days, whereas without food you can get to be between four and six weeks. In such a way that the water it is a well essential and much more important and scarce.
Many futurólogos predict water wars in the near future, at least if you do not find the way of supplying the population of more than 8,000 million people. At the same time, climate change and environmental degradation are altering the availability and quality of water, regional and seasonal. Currently, 2,200 million people do not have access to safe drinking water is managed safely, and 4,200 million, or 55% of the world’s population, lack of sanitation is managed safely.
According to the study of The Guardianmillions of americans are at risk of being disconnected from the water supply due to the increase in the price of bills. In 2019, americans paid an average of 104 dollars a month, or $ 1,250 per year for the water. And, since 2012, the water bill increased by 31%, surpassing inflation.
Between 2010 and 2018, the water bill increased by 154% in Austin, Texasof 566 dollars in 2010 to 1435 dollars in 2018, despite the efforts of mitigation of the drought. The demand for domestic water, in turn, grew 600% between 1960 and 2014at a pace significantly faster than that of any other sector.
In India, the groundwater reserves started to become exhausted for years. According to studies by the World Bank, the extraction of groundwater for agricultural uses in India has multiplied by seven in the last 50 years. Along with this, India removed each year more groundwater than EE. UU. and China together.
In summary, the water demand is restricted by its low quality. In addition, it is causing a deterioration of freshwater resources in terms of quantity (overexploited aquifers, dried-up rivers, etc).
In this context, investing in water is investing in the future. Among the major stock indexes are associated with the water stress the S&P Global Water Indexthat provides an exposure tradable and liquid at 50 companies around the world that are involved in the industries related to water.
Also Palisades Water Indexa stock index is a weighted and issued in dollar and Société Générale Water World Indexindexes WOWAX are formed by the 30 largest companies in the fields of public water services.
***Igor Kuchma analyst at Trading View.