“I’m so miserable without you, it’s almost like you’re here!” crooned country singer Billy Ray Cyrus a few years back. Investors are feeling the same about the Fed these days as that august body continues to remove monetary stimulus from the capital markets in order to contain inflation. At the margin, we would still be inclined to “tilt” investment portfolios in the direction of traditional energy investments as the price of oil has dropped of late due to weakening global economies. However, fossil fuels will be a major factor in economic growth for decades to come.
Bob Bilkie, CFA