Investors should prepare for a large infrastructure plan from the federal government and position their equity portfolios accordingly, according to Morgan Stanley.

"We see a policy-driven increase in infrastructure spending as likely over time. Hence, investors should start studying its implications today," Morgan Stanley's research team wrote on Monday. "For investors who want exposure to this theme, our U.S. analysts analyzed selected stocks in their respective coverage universes that they believe will benefit most from an infrastructure spending boost across the Autos & Shared Mobility, Machinery, Metals & Mining and Transportation spaces."

In the bank's base case, infrastructure spending would return to its long-run average share of GDP, implying a $1.1 trillion package over 10 years. The flood of cash would be designated to rebuild the nation's roads and bridges, drawing upon American machinery and auto manufacturers to help restore the highway system.