EUROPE’S ENERGY CRISIS IS KEEPING ENERGY PRICES AND INFLATION HIGH
America leads the world in oil and gas production. We believe midstream energy infrastructure offers predictable cash flows to investors..
MLP Seasonals
Seasonal patterns to the returns of most asset classes rarely seem to last beyond their discovery. “Sell in May and Go Away” has been shown to either work or not work depending on precisely when you close the trade out. Rather than the Summer being a bad time for stocks it’s just that September is […]
As Bad as IBM's Been, Amazon's Been Worse
About a year ago our newsletter compared the valuation of IBM and Amazon (AMZN). At the time IBM had a P/E of 10X (AMZN’s was 166X), was growing Free Cash Flow (versus flat at AMZN) and seemed wholly more attractively priced than AMZN. As we noted then, we owned IBM and not AMZN, where we think that […]
The Dilemma of Hedging
Assuming you’re not the type of investor whose mood is synchronized with the daily gyrations of the stock market, October has been an interesting month. Although it’s not over yet so of course anything can happen, to this point October looks like a big, short-lived margin call. Leveraged investors and those who like to hedge […]
Bulls Talk While Bears Sell
We’re in one of those periods of time in the market where participants are simply talking past one another. The fundamentally-driven bull case acknowledges that sharply lower oil prices are bad for E&P companies but notes that for the rest of the economy it’s like a tax cut. Power consumption just got cheaper. And yes, […]
Navigating the New Volatility
Some market strategists had been warning of a market reversal, and had been telling us that low levels of volatility couldn’t continue. If you keep forecasting a market drop long enough you’ll be right. Even for those of us who don’t focus much attention on market timing and therefore ought not to care, it’s never […]