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..
Energy As A Hedge Against Geopolitical Risk
It’s a measure of the increased importance of natural gas to the world economy that geopolitical tensions now move its price the way crude oil has responded for decades. Russian troops massing on the border with Ukraine have shed an uncomfortable light on Europe’s vulnerable natural gas supply. Climate extremists are partly to blame because […]
The Bubble Was In ARKK’s Arc, Not Value Stocks
It’s easy to sympathize with Cathie Wood’s plaintive cry that value stocks look like a bubble. As long-time energy investors, we’ve watched awestruck as the ARK Innovation ETF (ARKK) traced out its stratospheric path for both performance and AUM. “Bubble” was a wholly inadequate sobriquet (see ARKK’s Investors Have In Aggregate Lost Money). Having reached […]
Why You Shouldn’t Expect A Return To 2% Inflation
Jamie Dimon thinks the Fed may tighten rates six or seven times this year. Bill Ackman believes the Fed should punctuate the start of the tightening cycle with a 50bp hike in order to regain some credibility. Whatever their self-image, this is a dovish FOMC. Central bank bond buying is set to continue until March, […]
ESG Isn’t Ready For The Energy Transition
Investing based on Environmental, Social and Governance criteria (ESG) continues to gain following. Committing capital to companies that strive to do good appeals. Naturally, every company claims ESG credentials – because the criteria are so flexible it’s an inclusive definition. My favorite is Lockheed Martin’s regular membership of the Dow Jones Sustainability Index. If a […]
Fed Still Hoping For Lower Inflation
In Fed chair Jay Powell’s testimony yesterday during his renomination hearing before the Senate Banking Committee, he stuck to his familiar narrative of blaming inflation primarily on supply bottlenecks. We think excessive fiscal and monetary stimulus are more important reasons. One of the more persuasive charts is of Personal Consumption Expenditures (PCE). The Fed likes […]