Private Energy: Deserving a Place
The potential for strong performance and use as a diversifier give private energy investments merit as part of portfolios.
Authored by: Kevin Rosenbaum
Digging In: Assessing the Private Infrastructure Opportunity Today
New private infrastructure fund investors can find value in carefully evaluated managers and strategies, but they should ratchet down return expectations relative to years past.
Is the United States Set for a Spike in Inflation?
We doubt it. But, price levels are likely to rise gradually in the months ahead, as the rebound in energy commodities continues to impact measurements.
Outlook 2017: A Break in the Clouds
Change is in the air and the prospect for a bit of sunshine to break through the overhang of slow growth and lower-for-longer yields is palpable. Of course, the sun doesn’t shine forever, and overall our views are little changed. The things we have been worried about for some time—high valuations for certain risk assets, record-low interest rates, slow economic growth—have not gone away. The surest call to make for 2017 is that higher growth expectations will be paired with the distinct possibility of negative outcomes, putting a premium on diversification and liquidity management.
UK Property: Finding Opportunity Amid Heightened Political Risk
We remain cautious on UK property, but bold investors may find opportunities in the post-‘Brexit’ environment.
Does the OPEC Agreement to Limit Oil Production Improve Prospects for Natural Resources Equities?
Yes, though we expect natural resources equities (NREs) to continue to benefit from the rebalancing of supply and demand occurring in oil markets, irrespective of whether the 14-nation cartel follows through on its provisional deal to limit production.
Is a Crisis Likely in the UK Commercial Property Sector?
No, but we do expect UK commercial property prices to re-rate to a lower level as investors grapple with the consequences of the Brexit vote.
US REITs: Building the Case
US REIT valuations are elevated, but the fundamental and technical picture does not support the underweights that many investors likely, though unintentionally, have.
What’s Driving the Recent Rebound in Oil Prices?
Oil prices have benefited from a number of developments in recent weeks, including fresh data indicating declining production and healthy consumption, weakness in the US dollar, and news of supply-cap discussions between select OPEC members and Russia.
Commodity Futures: Still Plenty of Risks
The strong headwinds facing the commodity sector limit our conviction that current prices will translate into reasonable total returns.