Q: What news could’ve corresponded to new highs in the equity markets on Wednesday and Thursday this week?
A: Projections and discussions from the Federal Reserve potentially confirms three interest rate cuts this year. If the interest rate cuts were completed every other meeting of the remaining 6 meetings this year the cuts could fall on June 12th, September 18th, and December 18th.
Q: Why do high cash flow investments tend to rise when interest rates are cut?
A: Net Present Value of Future Cash Flows = The summation of future estimated cash flows adjusted for the discount rate forward.
Q: For the swimmers out there, how do you calculate the diagonal distance of your pool?
A: Pythagorean Theorem! (or get a camera distance app on your phone!)
Headline Round Up
*Servers and PCs Join Artificial Intelligence (AI) Mania.
*Super Micro Computer Inc. Up Nearly 1,000% Over the Past 12 Months Trouncing Nvidia?
*70% of Passive Environmental, Social & Governance (ESG) Funds Exposed to Companies Developing New Oil and Gas Projects? Environmental organization Reclaim Finance outs asset managers for greenwashing ESG-labeled passive funds.
*Bill Gates Backed TerraPower Goes Nuclear!
*Apple and Google in Talks to Allow Gemini AI to Power iPhones?
*The Trouble with the Banks Per Consulting Firm Klaros Group!
*DFW Led Country in Population Growth in 2023 Says the U.S. Census Bureau.
*Citizens Budget Commission Poll: Only Half of New Yorkers Plan to Stay Over 5 Years Down from 58% in 2017!
*Bloomberg: New Yorkers Earning 250K Save $88K Moving to Miami, $108K Moving to Dallas, $116K Moving to Austin. Savings down 20% – 30% from highs in 2019.
*Austin Running in Reverse After Being Named America’s Hottest Housing Market.
*Realtor Purge Likely After The National Association of Realtor’s Commission Fixing Settlement.
*Micron Technology, Inc. Spikes Over 10% After Reporting 58% Revenue Gain Up from the Same Quarter a Year Ago.
*Of Course, They Did! Justice Department Sues Apple Alleging Tech Giant Exploits Illegal Monopoly.
*Boom: U.S. Home Sales Jumped 9.5% in February While Median Existing Home Prices Up 5.7% Over 12 Months. U.S. residential housing starts spike 10.7% in February as well.
Mergers and Acquisitions!
*Cisco Systems Buys Cybersecurity and Analytics Company Splunk in $28 Billion All Cash AI Acquisition Deal.
Skid Row
*Will Tellurian Inc. Run Out of Cash Amid Leadership Changes?
Dow Jones Industrial Average Index (12/29/2023 – 03/22/2024)
– Courtesy of Bloomberg LP
Invesco QQQ Trust Series 1 (03/23/2021 – 03/22/2024)
– Courtesy of Bloomberg LP
Energy Select Sector SPDR Fund & SPDR Standard & Poor’s 500 Exchange Traded Fund Trust (12/29/2023 – 03/22/2024)
– Courtesy of Bloomberg LP
Gold Spot $/Oz (03/21/2009 – 03/22/2024)
– Courtesy of Bloomberg LP
SPDR Standard & Poor’s 500 Exchange Traded Fund Trust (01/29/1993 – 12/31/1999)
– Courtesy of Bloomberg LP
NetWorth Radio’s Texas Business Leadership Series: Spencer McGowan Interviews Brad Olsen and Oliver Doolin from Recurrent Advisors in Houston!
Prior to co-founding Recurrent, Brad was most recently the lead MLP portfolio manager for BP Capital Fund Advisors (BPCFA). Under Brad’s leadership, MLP AUM more than doubled (excluding the impact of appreciation).
From 2011 to 2015, Brad led Midstream Research for Tudor, Pickering, Holt & Co. (TPH & Co.), where he was recognized as the top all-around stock picker in the US by the Financial Times in 2013, and the top energy stock picker in the US by Starmine in 2014. Under Olsen’s leadership, the TPH & Co. midstream team was recognized in the WSJ’s “Best on the Street” poll as well as by Institutional Investor Magazine.
Brad also has experience as an investment analyst at Eagle Global Advisors in Houston, where he was part of a 3-person team that grew midstream/MLP AUM from $300mm to over $1bn from 2008 through 2011. He has also worked in investment roles at Millennium International, a large global hedge fund, and Strome Investment Management, an energy-focused hedge fund based in Santa Monica, CA. He began his career in the UBS Investment Banking Global Energy Group in Houston.
Brad earned a BA in Philosophy, Political Science, and Slavic Studies from Rice University in Houston.
Brad resides in Houston with his wife and four children. Brad was nearly fluent in Russian, but is very rusty.
Client Portfolio Manager / Energy Specialist
Oliver has spent over a decade specializing in natural resources, oil & gas, and MLP institutional equity research, most recently at Heikkinen Energy Advisors in Houston.Prior to joining Heikkinen, Oliver served in both research and business development roles at energy-focused investment banks, including 6 years as a Vice President at Tudor, Pickering, Holt & Co (TPH) in Houston, where he specialized in exploration and production (E&P), oilfield services (OFS) and midstream MLP companies.
Oliver began his career as a research analyst covering E&P and Oilfield Service companies for both TPH and Howard Weil, respectively.
Oliver holds a BS with dual concentrations in Finance and Legal Studies (Tulane University) as well as an MS in Accounting from the A.B. Freeman School of Business at Tulane University.
Oliver, originally from south Louisiana, is an avid outdoorsmen and runner. He resides with his wife and two children in Houston.
Profit Report
1. Qualified Charitable Distributions (QCDs) to meet Required Minimum Distributions (RMDs) for Individual Retirement Accounts Without Tax?
2. The McGowanGroup Wealth Management’s (MGWM) solutions toolbox for astute client questions.
3. 2024 Effective Tax Rates vs. Tax Brackets.
