• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 1 day Permian in for Prosperous and Bright Future
  • 4 hours Daniel Yergin Book is a Reality Check on Energy
  • 1 day YPF to redeploy rigs in Vaca Muerta on export potential
  • 1 day Gepthermal fracking: how to confuse a greenie
  • 10 hours Famine, Economic Collapse of China on the Horizon?
  • 11 hours Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 2 days US after 4 more years of Trump?
  • 1 day Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 2 days The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 5 hours Open letter from Politico about US-russian relations
  • 2 days Surviving without coal is a challenge!!
  • 3 days Portuguese government confirms world record solar price of $0.01316/kWh
WTI Rallies 10% In Bullish Week For Oil

WTI Rallies 10% In Bullish Week For Oil

WTI crude oil is set…

Why GM’s Wireless Battery Could Be A Gamechanger

Why GM’s Wireless Battery Could Be A Gamechanger

General Motors recently revealed its…

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.

Powell’s…





Leave a comment

Leave a comment




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