Profiting from Key Energy Trends in Canada, Australia and Mexico
We’re less than three weeks into 2018, but several notable trends have emerged affecting the names in our International Portfolio, which primarily comprises positions in Canadian and Australian energy companies. These developments bear watching and will create challenges and opportunities over the next 12 to 18 months.
Positioning the Portfolios for 2018
Many investors’ tax rates will come down in 2018, making the next few trading days your best opportunity for taking tax losses on any underwater positions that may take time to recover. With investors facing higher tax liabilities in 2017 than next year, the benefit of writing off a loser is that much greater.
Of course, we prefer to avoid taking any losses and run the Energy & Income Advisor Portfolios with an eye toward long-run returns. However, given the sector’s recent down-cycle and the topsy-turvy performance of many energy sub-industries over the past few years, we have a few positions that haven’t worked out because of timing issues or a faulty investment thesis. These sales will help to offset the handful of gains that we took over the course of the year.
No Longer A Keystone for TransCanada
We explore what the Nebraska Public Service Commission’s approval of the Keystone XL pipeline’s cross-border segment really means for TransCanada Corp.
Lessons from Canada for US Midstream Master Limited Partnerships
Does Canada’s midstream segment provide a model for the evolution of US master limited partnerships? We explore what factors have helped Canadian pipeline stocks outperform despite currency headwinds and lower realizations on oil and gas prices.
The Canadian Invasion and Other Trends in MLP M&A
We delve into some the recent trends in mergers and acquisitions involving master limited partnerships and other midstream operators.
International Intrigue
Our International Portfolio’s conservative allocation weathered the selloff in energy-related equities with aplomb and has continued its strong performance in 2016. The handful of names in our aggressive sleeve have also rallied hard this year. We revisit out strategy for the back half of the year.
Canada’s Comeback
Canadian energy stocks have rallied hard with oil and gas prices, but investors should remain cautious, stick with our strategy and focus on high-quality names.
Changes to the International Portfolio
We expect even the hardest-hit International Portfolio holdings to survive the current down-cycle. However, we have concerns about how long this recovery might take; in some instances, we’re be better off taking a loss and re-allocating capital to stocks that stand a better chance of making money over the next few years.
Canada and Australia
Canadian and Australian energy stocks have suffered the double whammy of lower oil and gas prices and a sharp retrenchment in the value of their home currencies relative to the US dollar.
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Live Chat with
Elliott and Roger on Jun. 28, 2018
Portfolios & Ratings
Model Portfolios
Balanced portfolios of energy stocks for aggressive and conservative investors.
Coverage Universe
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
MLP Ratings
Our assessment of every energy-related master limited partnership.
International Coverage Universe
Roger Conrad’s coverage of more than 70 dividend-paying energy names.
Experts
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Roger S. Conrad
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor
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Elliott H. Gue
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor