NetWorth Radio Advance Report - December 11, 2017

In this NetWorth Radio Advance Report, Spencer McGowan, President of McGowanGroup Asset Management, delivers financial news and intelligence with insights you can act on for December 11, 2017.

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Often the most popular investment category is “too much in the sun(1).” The resulting overpricing and subsequent bear underpricing have often marked the greatest dangers and resulting opportunities in my 31 year career.

In 2009, we cheekily nicknamed one of our best research pieces as “20 Companies That We Believe Will Not Die.” The list included Whole Foods which subsequently rose from under $10 to an all time high near $60(2). So unpopular were stocks we found most investors fearful of adding positions at what was proven to be a great inflection point.

Harken back to 2014. Oil was over $100(3). Scores of research pieces touted the energy master limited partnerships, one of the most popular investment categories at that time(4). For several years now we have watched opportunities develop which appear to have come to the point of attractive inflection in the inflation friendly energy category. The 3 year bear market cycle in oil prices appears to have now ended based upon recent prices approaching $60 per barrel after a 2016 low near $27(5).

Our diligent research process has identified, what we believe to be, one of the best opportunities since early 2016, when the high yield credit markets froze producing large discounts with high income. The term “capital call” refers to our urging clients to make deposits into an attractive asset class.

For clients able to make deposits and for our cash reserves, we are completing allocations into attractive high dividend energy companies. Please call to discuss the opportunities for 2018 “and beyond.”

Spencer D. McGowan – December 2017
McGowanGroup Asset Management

Sources

  1.  Hamlet Act1,Scene 2
  2. Bloomberg LP – July 2003/October 2013
  3. Bloomberg LP – West Texas Intermediate Crude, February 2014
  4. https://www.bloomberg.com/graphics/infographics/mlps-draw-record-investment.html
  5. Bloomberg LP – West Texas Intermediate Crude, November 2017/January 2016
Whole Foods, Inc. (Approx. 10 years)

-Courtesy of Bloomberg LP

Crude Oil Futures (Approx. 10 years)

-Courtesy of Bloomberg LP

Alerian MLP Index (Approx. 10 years)

-Courtesy of Bloomberg LP

Crude Oil Futures and U.S. CPI Index (10 years)

-Courtesy of Bloomberg LP

Bitcoin Currency (Approx. 5 years)

-Courtesy of Bloomberg LP

Headline Round Up!


*Bitcoin Hits $15,000
*Texas Banks Rally Concurrent with Tax Reform
*Goldman Says $62 Per Barrel Oil for 2018!
*Energy Stocks and Bonds Rally!
*Tax Reform Will Limit Tax Exempt Bond Supply
*GE: Losing Power!
*NO MO’ HIFO!!!? WHAT IS FIFO? What does it mean for investors?
*Tax Reform Bullet Points!
*Record 401k Growth! Are YOU Above Average?
*Solar Power Updates: First Solar Rallies on Trump Tariff? Long Term Growth Opportunities for Investors
*Wantons with Your Latte?
*Lotsa Jobs!

 

Profit Report:


Cryptocurrencies and Bitcoin Options and Futures
Artificial Intelligence
The Future of Global Trading
Why Does Tax Loss Selling Point Towards Energy Infrastructure and Royalties for 2018?
2018 Global Macro Outlook?
Inflation in Second Half of 2018?
What’s the Plan? Details of the New Tax Plan and What it Means for Investors!

 

Featured Research Solutions:


Investors are invited to improve decision making with a comprehensive tour of global economics, indicators, and actual results.
*Five Questions About US Tax Legislation
*The Next Recession

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