The financial infotainment industry doesn't let the facts get in the way of a good story, especially when it comes to the oil market and its complexities. Recent articles hinting that Saudi Arabia and OPEC could reduce oil output to support pricing may attract eyeballs, but they represent shoddy journalism. Elevated inventories and the impending refinery turnaround season suggest that oil prices will suffer another leg down.
We highlight some of the key investment themes that stood out after three days of presentations and talking to management teams at the Edison Electric Institute's annual financial conference, one of the premier events for utility analysts and industry insiders.
After the first day of presentations and meetings at the Edison Electric Conference's 50th Annual Financial Conference, one theme stands out: increasing adoption of solar power doesn't sound the death knell for regulated electric utilities. In fact, this would-be disruptor creates a huge growth opportunity for incumbent power producers.
The Federal Open Market Committee's October statement put the option of a potential rate hike back on the table for December. Although six years of extraordinarily accommodative monetary policy makes the Federal Reserve's first interest rate hike in nine years a big deal, all signs point to this tightening cycle occurring gradually and in a halting fashion. Investors shouldn't overlook this reality.
Valuations affect the S&P 500’s returns, but this impact manifests itself more clearly over the long haul. In other words, price-to-earnings ratios are a poor metric for timing the market, but a useful tool for investors looking to hold positions over a longer time frame. What does that mean for investors? The stock market looks expensive right now; historically, buying the S&P 500 at these levels would result in positive, but subpar, returns over the next 10 years
Although the service side of the US economy remains healthy, manufacturing activity has weakened significantly. In fact, by one measure, the performance gap between these two segments of the economy has reached its widest point in about 15 years. We analyze this divergence and elaborate on our hedging strategy.
All but two of our Portfolio holdings met or exceeded their guidance in the third quarter. Meanwhile, we continue to harvest our big winners and reduce exposure to higher-risk names as we look to raise capital for future buying opportunities.
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