Simon Lack | TalkMarkets | Page 12
Managing Partner, SL Advisors, LLC
Contributor's Links: SL Advisors, LLC
Following 23 years with JPMorgan, in 2009 Simon Lack founded SL Advisors, LLC, an SEC Registered Investment Adviser. SL Advisors manages investments in energy infrastructure, including the Catalyst MLP & Infrastructure Fund (MLXIX), the American Energy Independence Fund (USAI), and separately ...more

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Pipelines Are ESG
ESG is in the eye of the beholder. My favorite is Lockheed Martin, a perennial member of the Dow Jones Sustainability Index. If building weapons to blow up people and property can be done in a sustainable way, then ESG is a generous mistress.
Bonds Are Getting More Interest
The rise in ten-year Treasury yields this year has prompted more investors to consider how they should respond to higher inflation expectations.
Pipelines Are Part Of The Energy Transition
Last week Kinder Morgan reported earnings, which included around $1BN in one-time gains from the Texas power outages in February. Natural gas prices increased briefly by more than 100X.
The Fed’s Narrowing Definition Of Inflation
The ascent in lumber prices is the most spectacular of many commodities that reflect the pandemic recovery. Recently a general contractor I know lamented that the wood for his typical newbuild construction had doubled over a few months.
The Consumer Is Ready To Spend
“Coiled, ready to go.” is how JPMorgan CEO Jamie Dimon described consumers last week. “Consumers have $2 trillion in more cash in their checking accounts than they had before COVID.” he added.
Energy Policy Meets Reality
Public policy is becoming more important to energy investors. Democrats now own the climate change issue. The desire of progressives to advance a world of solar panels and windmills is confronting pragmatists who’d like to keep the lights on.
Why Goldman Unsurprisingly Avoided Archegos Losses
Goldman almost always sidesteps trouble. That’s one of the conclusions from the Archegos blow-up that is estimated to have cost the firm’s lenders as much as $10BN.
Why You Can’t Trust Reported Inflation Numbers
Today’s inflation numbers don’t fully reflect the experience of most Americans. It’s time the BLS adopted a more realistic approach.
Making LNG Cleaner
Natural gas has a clear edge over coal when it’s burned to generate electricity. But the flaring and methane leaks that are part of natural gas production worldwide are a consideration for some buyers.
Is Biden Bullish For Pipelines?
The Trump presidency was unequivocally good for investors. The S&P500 returned 14.9% p.a. during his four-year term. There will be strong opinions on either side, and we’ll leave that debate for others.
Pipeline Cashflows Continue Higher
Covid accelerated a trend already in place in the U.S. energy sector, which is to grow Free Cash Flow rather than production. Chevron’s Investor Day last week promised 10% annual increase in FCF through 2025.
Electric Vehicles Are Picking Up Speed
Last month saw U.S. Electric Vehicle (EV) sales up 40% year-over-year. Every Tesla owner I know loves their car – although the February jump was helped by the launch of Ford’s Mustang Mach-E.
Energy Stocks Continue To Lead
Fed chair Jay Powell wasn’t to blame for Thursday’s equity market sell-off, no matter what journalists thought. His comments were dovish, reaffirming the Fed’s desire to see meaningful improvement in employment before moderating their bond buying.
The Fed Mutes The Messenger
U.S. bond investors would do well to remind themselves that the Fed’s objective of stable prices is linked to maximizing employment.
Bond Investors Are Right To Worry
Inflation can be too low, and in order to ensure they adhere to their dual mandate of maximum employment consistent with stable prices, the Fed is willing to take a little risk with price stability.
The Biden Put
Inflation fears are percolating. The iShares iBoxx $ Investment Grade Corporate Bond ETF had its biggest ever stretch of outflows over the past six weeks. There are plenty of warnings signs. Commodity prices are booming.
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