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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..
Pipelines Offer Protection From European Conflict And The Fed
Friday afternoon’s warning from the White House that a Russian invasion of Ukraine could come at any time did at least distract attention from Thursday’s CPI. Energy stocks rose while the S&P500 fell – a welcome negative correlation. Bonds also recouped their losses from the prior day. Over several decades the bond market’s sensitivity to […]
The Market’s Too Relaxed About Interest Rates
Mohamed El-Erian maintained his criticism of the Federal Reserve, with an op-ed on Monday morning (see Fed and ECB still behind the inflation curve). It’s remarkable that the ECB’s “hawkish pivot” simply resulted in a fourth quarter tightening no longer being off the table. The Fed meanwhile moves ahead in their predictable fashion even while […]
Learning From EU Mistakes On Energy Policy
The other day my partner Henry Hoffman was commenting on what his family pays for natural gas to heat their home in Pelham, NY. Winters in the northeast US are not for everyone – your blogger misses most of the worst weather by evacuating to Florida for a few months. Natural gas is the most […]
Why You Should Follow The Money In Pipelines
Last year fund outflows totaled $1.94BN for the midstream energy infrastructure sector (still often referred to as the MLP sector even though most of the market cap is corporations) according to JPMorgan. October was the only positive month, at a modest $6MM. 2021 was the third straight year that fund outflows exceeded $1.9BN. The last […]
Thoughts on Jay Powell and European Natural Gas
Markets interpreted Fed Chair Jay Powell’s press conference bearishly last week. This was mostly because of omissions – he didn’t rule out raising rates at a faster pace than once a quarter, and he didn’t rule out beginning with a 50bp hike in March. As ever, monetary policy will be data-dependent. Eurodollar futures flattened further, […]