• 3 minutes Cyberattack Forces Shutdown Of Largest Gasoline Pipeline In United States - Zero Hedge
  • 6 minutes Renewable Energy Capacity Jumped 45% Worldwide In 2020; IEA Sees 'New Normal'
  • 11 minutes Forecasts for Natural Gas
  • 2 hours U.S. Presidential Elections Status - Electoral Votes
  • 10 hours Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 4 hours Electric vehicle market growth is a blessing for some metals — and not a big worry for oil
  • 11 hours .
  • 7 hours Сryptocurrency predictions
  • 1 day CRAPPIFORNIA DOES IT AGAIN! California proposes to steer new homes from gas appliances
  • 2 days 1 in 5 electric vehicle owners in California switched back to gas because charging their cars is a hassle, new research shows
Editorial Dept

Editorial Dept

More Info

Premium Content

Is This The Best Long-Term Energy Play?

  • As oil markets slowly begin to recover, there are some high yield stocks out there that investors should be looking for
  • KMI, in particular, appears to be lagging behind the market on the way back up and could provide a great long-term opportunity

You don’t need me to tell you that the last few months have been a time of massive volatility in energy, indeed in just about every imaginable tradeable market. With massive volatility, though, comes not just increased risk but also massive opportunity, in both short- and long-term trades.

The short-term ones involve spotting likely trends, such as when I recommended a couple of fuel cell stocks three weeks ago, FCEL and BLDP just before they jumped sixty and forty percent, respectively. The long-term opportunities can also be identified based on spotting potential trends, although of a different kind. In the former, you are looking for the next trendy pick, in the latter, for investment themes with long-term appeal and staying power.

To me, the biggest of those in the coming years, never mind weeks or days, is going to be the search for yield. It is what led me to recommend RDS.A back on March 20th, when it was in the low $20s, and it still applies now.

We live in a world where the 10-Year U.S. Treasury, which, keep in mind, is issued by a government with $23 trillion of debt, returns less than 0.7%, and the debt of some other nations has a negative yield. That creates a problem for large funds and institutional investors, who typically hold some yielding securities to produce regular income and smooth out return.

Based on what Fed Chair Jay Powell said this week, those ultra-low rates are not likely to change any time soon either.


Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News