Allocating to emerging markets is a Wall Street construct designed to confuse investors and justify periodic reallocations to higher fee products that obscure measures of relative performance. Some financial advisors will be outraged at this statement. So let me quickly move to the evidence. Start with the Vanguard Emerging Markets Stock Index Fund, the biggest […]

Chesapeake (CHK) and Southwestern (SWN) are the latest energy companies to be contemplating a merger. Chesapeake was founded by Aubrey McLendon, whose belief in higher natural gas prices combined with his ample risk appetite led the company into financial difficulties during a period of low prices. In 2016 he was indicted by a federal grand […]

President Biden probably won’t brag about US energy production, but when the final figures for 2023 are in the US will have set numerous records. Crude oil production reached a record 13.2 Million Barrels per Day (MMB/D) in October, surpassing the prior record set four years earlier before the pandemic. Few analysts were projecting this […]

It can fairly be said that the bond market boosted stocks in the last couple of months of the year. Equities have lost their cheapness in recent years, ever since the Fed belatedly became concerned about inflation. TINA became unfashionable as interest rates returned to unfamiliar, reasonable levels. Compared with bonds, stocks are as expensive […]

Heading into year’s end, a number of interesting stories caught my attention. Energy Transfer (ET) rarely avoids conflict and is embroiled in a dispute with three pipeline developers in Louisiana who sought crossings over Gulf Run Pipeline, owned by ET. Momentum Midstream, one of the developers with a $1.6BN project, accused ET of unfair trade […]

The only negative about the pipeline sector today is the direction of fund flows. It’s regularly covered in this blog and a topic that continues to mystify us. Although we’re still awaiting data for the last two months of 2023, it’s almost certain to be the fifth year of the last six during which retail […]

Christmas is a time of traditions, which in turn create nostalgia. Like endorphins, this is a free and harmless narcotic.   Putting up the external Christmas lights, which we typically do right after Thanksgiving, usefully expends a few calories and kicks off that warm Yuletide feeling. Hunting through dusty boxes in the chilly attic for […]

This time of year usually prompts a blog post on MLP seasonals. It’s been a reliable topic (see 2015’s Why MLPs Make a Great Christmas Present or 2016’s Give Your Loved One an MLP This Holiday Season). The Alerian MLP Infrastructure Index (AMZI), which is tracked by the Alerian MLP ETF (AMLP) has long displayed […]

There’s no particular reason why a 12 month outlook is more important at year’s end, but that is nonetheless when research analysts take stock of past forecasts and offer new ones. In late 2022 many economists were forecasting a recession by now. In his press conference on Wednesday, Fed chair Jay Powell retained enough humility […]

Brent crude currently trades for around $4 per barrel less than a year ago. Back then Goldman Sachs published another highly convincing research report predicting higher oil driven by increasing demand and chronic underinvestment in new supply. Since then Jeff Currie has left the firm, hopefully not because of his not yet vindicated commodity super […]