Blog
EUROPE’S ENERGY CRISIS IS KEEPING ENERGY PRICES HIGH
America leads the world in oil and gas production. We believe midstream energy infrastructure offers predictable cash flows to investors.
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, […]
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, […]