The Commodities Channel

‘Simplification Day’ for Oil & Gas MLPs: What Investors Need to Know

We believe the news is evidence of a broader shift toward simpler corporate structures in the midstream energy sector – a trend that supports our investment approach and our constructive view of the sector.

Food for Thought: Integrating vs. Mixing

Although a naïve comparison appears to favor the integrating approach to multi-factor strategy construction, after taking into account both quantitative and qualitative considerations, many investors—those seeking transparency, diversification, minimal governance oversight, and low fees—may find mixing is a more sensible choice.

The Fundamentals of RAE: Seeking Value Beyond Borders

It may be time for U.S. investors to challenge their home-country equity biases.

How to Fire a Client

The decision to "fire" a client is painfully difficult. Many planners are reluctant to disengage with difficult clients due to a sense of responsibility. If you are contemplating firing some of your clients, the following steps will ease the break-up and ensure a minimum of follow-on damages.

Gundlach Defends Technical Analysis

Criticism of technical analysis ranges from bemused skepticism to claims of harebrained alchemy. Few investors as well-respected as Jeffrey Gundlach admit to using it. But yesterday, he explained why he relies on technical analysis under certain conditions.

Oil and the Economy

The rise in oil prices is expected to have mixed effects on the U.S. economy. Higher gasoline prices will restrain consumer spending growth to some extent. However, increased energy exploration implies more capital spending, adding to GDP growth. For Federal Reserve policymakers, the key question is whether higher costs of transporting goods may be passed along to consumer prices.

Imagining the Stock Market in Ten Years

What will the next ten years look like in the U.S. stock market? As we often do, we refer you to one of our favorite songs, “I Can Only Imagine,” and a book by George Friedman, The Next 100 Years. We believe the best performing securities of the next ten years will be very different from the securities and the sectors which currently capture the “popular imagination” of investors.

Global Economic Perspective: May

In this month's Global Economic Perspective, our Fixed Income Group opines on rising energy prices, US Treasury yields, emerging-market currency pressures and global economic growth.

Why Not 50?

Asking if the Federal Reserve will lift the federal funds rate on June 13 is like asking if Las Vegas Golden Knights goalie Marc-Andre Fleury, who has stopped 94.7% of the shots against him in the 2018 Stanley Cup playoffs, will stop the next one. It's a virtual lock.

Weekly Gasoline Price Update: WTIC Highest Since Late 2014

It's time again for our weekly gasoline update based on data from the Energy Information Administration (EIA). The price of Regular and Premium were up five and four cents, respectively, from last week. According to GasBuddy.com, California has the highest average price for Regular at $3.69 and San Francisco, CA is the most expensive city, averaging $3.81. Louisiana has the cheapest at $2.60. The WTIC end of day spot price closed at 72.35, a 2.0% increase from this time last week and its highest since late 2014.

Weighing the Week Ahead: Will Higher Interest Rates Lead to Lower Stock Prices?

The economic calendar is light, and the market week will be shortened. There is no holiday this week, but expect many participants to take off early for a long weekend. If interest remain above 3% on the ten-year note, that will be the focus.

Are You Prepared for Rising Interest Rates?

Interest rates continue their upward trend. In March, the US Federal Reserve (Fed) hiked the federal funds rate by 25 basis points to a target range of 1.5% to 1.75%, citing strength in the US labor market, a low unemployment rate and moderate economic growth.

Fund Managers' Current Asset Allocation

In the past 9 months, US equities have outperformed Europe by 6% and the rest the world by 5%. Despite this, fund managers remain underweight the US. US equities should continue to outperform their global peers on a relative basis.

Socially Irresponsible Investing

Socially responsible investing on an institutional level, where one body makes “socially responsible” capital allocation decisions for a pool of investors, is a utopian concept, just like socialism. It is simply impractical.

Chicago Fed: April Sees Little Change

"Index points to little change in economic growth in April." This is the headline for this morning's release of the Chicago Fed's National Activity Index, and here is the opening paragraph from the report: "The Chicago Fed National Activity Index (CFNAI) ticked up to +0.34 in April from +0.32 in March. Two of the four broad categories of indicators that make up the index increased from March, and three of the four categories made positive contributions to the index in April. The index’s three-month moving average, CFNAI-MA3, increased to +0.46 in April from +0.23 in March."