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.

Energy Independence Is Not Just For America

SL Advisors Talks Markets
SL Advisors Talks Markets
Energy Independence Is Not Just For America
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In the US, energy independence has been a sought after goal for generations. Ever since the 1973 Arab oil embargo in response to the Yom Kippur War, US presidents have spoken out in favor of reducing our dependence on foreign oil – notably OPEC. There are several definitions of energy independence — The definition of […]

The Fed’s Yield Curve Problem

SL Advisors Talks Markets
SL Advisors Talks Markets
The Fed’s Yield Curve Problem
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What’s the best shape for the yield curve? Today’s flat verging on inverted shape isn’t optimal. It suggests the market is worried that the Fed will tighten too much, causing a recession. It also makes it hard for banks to make much money extending credit, because they typically lend for longer maturities while funding themselves […]

The Fed’s Aspirational Base Case

SL Advisors Talks Markets
SL Advisors Talks Markets
The Fed’s Aspirational Base Case
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There were few places to hide last quarter. The S&P500 was –4.6% with nine of its eleven sectors losing. Energy sparkled at +39% and Utilities were +4.8%. Bonds were even worse, with the Bloomberg Aggregate –6.2%. Close to our hearts, pipelines (as defined by the American Energy Independence Index) were +24.5%. Low yields have underpinned […]

Energy Investors Unfazed By US Selling Oil

SL Advisors Talks Markets
SL Advisors Talks Markets
Energy Investors Unfazed By US Selling Oil
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The Administration’s planned release of 1 million barrels of oil a day from the Strategic Petroleum Reserve (SPR) is borne of their frustration with high prices. Average crude prices have been higher under Biden than Trump, even after adjusting for the collapse during Covid (not Trump’s fault) and the jump following Russia’s invasion (not Biden’s […]

US Natural Gas Takes Center Stage

SL Advisors Talks Markets
SL Advisors Talks Markets
US Natural Gas Takes Center Stage
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Europe’s realization that it needs a strategy to ensure energy security has provided a further boost to US natural gas stocks. Last week was especially good – NextDecade (NEXT) added another customer for their proposed Rio Grande Liquefied Natural Gas (LNG) export facility. By coincidence we had just interviewed Matthew Mott, SVP of their Next […]