INFLATION PRESSURES ARE BUILDING. PROTECT YOURSELF.

The Federal government is pursuing seemingly unlimited spending and is enabling this with unsustainably low interest rates. Investors need strategies to preserve purchasing power and stay ahead of the stealth erosion of their savings.

Fed Hikes Inflation Outlook By 1%

Fed chair Jay Powell appeared slightly less confident at Wednesday’s press conference. He acknowledged that their forecast of temporarily higher inflation might be wrong, and it was hard to say when it would moderate. He repeated his warning that, “forecasters have much to be humble about.” This humility must apply to the Fed. One of […]

Swiss Reject California Living

On Sunday, Swiss voters narrowly rejected increased taxes on users of fossil fuels. The measure was promoted by the government as necessary to ensure Switzerland can meet its commitment under the Paris climate accord. Following the government’s defeat, plans to meet Switzerland’s 2030 emissions goals have been derailed. 8.5 million Swiss people emit around 0.1% […]

Global Natural Gas Demand Is Rising

This past winter included some tumultuous weather events with implications for global energy markets. Winter storm Uri exposed vulnerabilities in the Texas power grid, and left millions without heat during an unusually cold snap (see Why Texas Lost Power). All power sources provided less than needed – some blamed the state’s excessive reliance on windmills, […]

Is The Energy Transition Inflationary?

This is an assertion made by economist Roger Bootle. Two decades ago he argued the opposite, in The Death of Inflation: Surviving and Thriving in the Zero Era. But now the founder of Capital Economics regards, “the environmental emphasis and in particular the drive towards net-zero” as the single biggest factor pushing inflation higher. The […]

Pipeline Rally Exposes Lagging MLP Sector

Last week the Alerian MLP and Infrastructure Total Return Index (AMZIX) finally recouped its Covid losses. MLPs have returned to where they were at the end of 2019, when few knew what a coronavirus or N95 mask was. MLP investors have had a miserable decade. The Shale revolution turned out to be an investment bust through overinvestment; the energy […]