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Contributor's Links: Energy Profits in Dividends
Power Hedge is an independent stock research and analysis firm with a passion for macro- and microeconomic analysis. The company was founded in 2010 by Daniel E. Gibbs. Mr. Gibbs has a very interesting background. He graduated summa cum laude from the Pennsylvania State University with a B.S. in ... more

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Biden's SPR Release Will Have Minimal Effect On Oil Prices
The problem is not the production or supply of oil. America's refineries cannot handle more crude, which sharply limits the impact that any SPR release will have on energy prices.
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FOF: This Fund Of Funds Looks Attractive For Income Investors
This fund looks like it could help you overcome the biggest problem that retirees have today - generating income.
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JPS: A Great Income Fund To Help You Beat The Fed
A great CEF to help Investors beat he Federal Reserve's terrible policies.
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Global Partners: Still Serving As A Hedge For Our Portfolios
Gasoline stations typically see profits go up when crude oil prices go down, allowing them to serve as a hedge. This company is weathering the pandemic very well and helps offset the impact of low oil prices on an energy portfolio.
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LIT: Bet On Electric Cars And 5G With This ETF
The rise of electric cars and 5G are some of the biggest trends in technology right now. These technologies all require lithium to power them. Thus as they become more dominant, lithium will be in high demand. This ETF is one good way to play this.
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Enbridge: Stable In The Current Environment With Growth Prospects
Enbridge is the largest midstream company in North America and boasts stable cash flows, significant growth opportunities, and the likelihood of forward dividend growth. This is exactly the kind of company that should appeal to retirees.
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Comments

Latest Comments
A 75% Chance The Fed Hikes Interest By 75 Basis Points On Wednesday, Then What?
4 months ago

The problem is that even 3% is not anywhere close to enough to save the economy when inflation is at 9.10%!

Antero Midstream’s 9.73% Yield Is Running Out Of Gas
4 months ago

Why are you using free cash flow and not distributable cash flow?

I see your point though. Let me investigate this one further and maybe I'll have a response for this article.

In this article: AM
Norwegian Strikes Could Sever NatGas Supplies To UK
4 months ago

The problem here is that there's no easy way to play short-term natural gas price increases in Europe for Americans. LNG won't work because that normally requires a 15-20 year commitment. I can't see any LNG producer agreeing to just give Europe a couple shipments.

Why There Won't Be Another Shale Renaissance Thanks To ESG
10 months ago

Shale companies have been largely focusing on generating free cash flow too and letting production die off. An inability to obtain financing almost certainly points to substantially higher energy prices going forward.

The Election Trade Is Not Stocks
1 year ago

I think it's becoming even more obvious now with that $1.9 billion stimulus package!

The Pandemic Recession And Central Banks
2 years ago

I don't know. Thus far there has been inflation, but it's been confined to the financial market and other assets like real estate. It hasn't resulted in inflation yet (as the Fed reports inflation) because the new money hasn't entered the economy. The question is, what will happen when people actually want to spend their wealth on things other than stocks or real estate? There's also some issues with the way the Fed measures inflation. The price of food, for example, was 3.90% higher in September 2020 than in September 2019. It was actually much higher over most of this year once the money-printing started: tradingeconomics.com/united-states/food-inflation I don't know about you, but I'd call a rise in the price of food inflation! It's hard to deny that the cost of healthcare is still rising. I'd call that inflation too. The Fed's calculations tend to ignore things like this because that would mean that the government would have to pay out bigger cost-of-living increases to Social Security and other benefit recipients and that would strain the Federal budget more than it already is. So I don't think we'll see inflation as reflected in the Fed's numbers. I think we're already seeing it in the cost of goods that the average person buys!

The Pandemic Recession And Central Banks
2 years ago

Interesting. The question is whether or not this unprecedented money supply expansion will lead to inflation.

The Election Trade Is Not Stocks
2 years ago

Wouldn't gold be a pretty good way to play the increased amount of bonds under a Biden administration? After all, that would dramatically increase the money supply?

Fundamentally Speaking: Earnings Don’t Support Bullish Thesis
2 years ago

Interesting concept, but you have a point. People are still terrified of COVID-19 and it is likely that we will see a permanent shift towards work-at-home. Many companies have begun to move this way just because workers seem to prefer it. Those companies that can help with this will likely see increased business. I'm still not sure that justifies some of the insane valuations that we are seeing though.

I agree with you about not being in commercial property. Residential property REITs might hold up okay because people still need a place to live but they are still dangerous in the short-term because about a third of renters nationwide are behind on their rents. Where I live though, rents actually have gone up slightly (although vacancies also appear to be ticking up). When it comes to REITs, I'd rather be in something like a farmland or data center REIT right now.

In this article: SPX
Fundamentally Speaking: Earnings Don’t Support Bullish Thesis
2 years ago

The market is not being driven by fundamentals. It is being driven by passion.

If you equal-weight the S&P 500, it's only a percentage point or two above its March lows. Literally, all of the action is being driven by the five mega-cap tech stocks that now account for 23% of the total market cap of the entire index.

The Federal Reserve has added more than $3 trillion to its balance sheet since March and that money needs a home because everybody is so terrified about inflation that they are afraid to sit on cash. They are therefore buying the momentum stocks (The FAAMG names + TSLA).

This is exactly what a bubble looks like. You will never see a greater destruction of wealth than when this bubble bursts. The question is when exactly it will happen.

In this article: SPX
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