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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.
Pipelines Close In On A Milestone
The S&P500 is up 11% so far this year. 2021 EPS estimates from Factset are up by close to the same amount. The rise in ten-year treasury yields means the Equity Risk Premium (ERP) doesn’t show the market to be quite as cheap as it was, but not by much. Covid has been less traumatic […]
Inflation – Back By Popular Demand
Inflation is probably the biggest known risk facing equity markets today. Last week’s CPI report was expected to be high and still exceeded expectations. The 4.2% year-on-year increase in the All Urban Consumers index (CPI-U) was boosted by comparisons with a year ago. The Fed, and many economists, have warned of the transitory base effects […]
Hackers Highlight Pipelines’ Value
The hacking into Colonial Pipeline’s network demonstrated the high-tech vulnerability of some infrastructure as well as society’s reliance on it. Colonial is the largest privately owned pipeline in the U.S., carrying up to 45% of the east coast’s gasoline supply from refineries in Texas to New Jersey. On Monday gasoline futures initially rose 4% on […]
Why The Energy Transition Is Hard
The media is not short of simple solutions for climate change. Solar panels and windmills have been cheaper than natural gas for so long in the popular narrative that you’d think utilities are willfully pursuing lower profits by not blanketing the country with them. The industry that provides over 80% of our energy is often […]
The Fed Is Losing Believers
This Friday’s non-farm payroll report is more important than normal. With the Fed in single-minded pursuit of half their twin mandate (maximum employment), the stable prices objective is receding. The recent stalling in the bond market sell-off doesn’t correspond to equanimity over inflation. Declining real rates have accompanied the drop in nominal ones. In April, […]