The Risks and Opportunities in U.S. Energy Infrastructure
Last week’s “Behind the Markets” podcast focused on opportunities and risks in the U.S. energy infrastructure space, with two great guests: Simon Lack of SL Advisors and Bill Stone, Chief Investment Officer at Stone Investment Partners.
In this conversation we touched on:
- The disconnect between U.S. energy infrastructure fundamentals, what we have accomplished in the U.S. and the sector’s performance; that is to say, how the U.S. is already an exporter of natural gas and can become the world’s largest producer of oil by the end of 2019, yet how many energy infrastructure indexes are down over one-third of their value over the last four to five years
- How the U.S. capitalist model overcame OPEC trying to put the U.S. shale producers out of business
- The different index approaches for capturing U.S. energy infrastructure
- How a number of energy infrastructure companies that are focused on income investors burned their legacy shareholders by cutting current distributions and how the management teams running these companies now face the difficult task of recruiting a new generation of investors with different goals
- How changing tax incentives are encouraging different operating structures, and the impact this may have on the industry
The conversation was rich in insights on a very important sector of the U.S. economy. Listen to the full conversation below.
Jeremy Schwartz has served as our Global Chief Investment Officer since November 2021 and leads WisdomTree’s investment strategy team in the construction of WisdomTree’s equity Indexes, quantitative active strategies and multi-asset Model Portfolios. Jeremy joined WisdomTree in May 2005 as a Senior Analyst, adding Deputy Director of Research to his responsibilities in February 2007. He served as Director of Research from October 2008 to October 2018 and as Global Head of Research from November 2018 to November 2021. Before joining WisdomTree, he was a head research assistant for Professor Jeremy Siegel and, in 2022, became his co-author on the sixth edition of the book Stocks for the Long Run. Jeremy is also co-author of the Financial Analysts Journal paper “What Happened to the Original Stocks in the S&P 500?” He received his B.S. in economics from The Wharton School of the University of Pennsylvania and hosts the Wharton Business Radio program Behind the Markets on SiriusXM 132. Jeremy is a member of the CFA Society of Philadelphia.