RE:Laura LauInteresting dichotomy in that if she feels that oil prices are causing inflation and the FED is going to stay the course to crush inflation with higher for longer interest rates then they appear to have the goal of creating demand destruction which could have the effect of lowering oil prices depending on how dedicated the OPEC+ powers are at keeping oil prices high regardless of global demand. I am not sure how she can be bullish on oil and bearish on the economy simultaneously as I think they are codependent.
I hope the FED has more tools in the box than just raisng interest rates and throwing the economy under the bus. I kind of feel like they are going to hold and use the threat of higher rates to try and scare money borrowers out of over extending. Pain is inflicted everyday on indebted citizens and only grows more as loan and mortgage renewals come due. Fuel prices are coming down with summer demand over and winter blends come into play which should lower inflation slighlty but slowly. It would be good if the FED felt like a, wait and see, approach was prudent as O&G producers, like CVE, remove the last vestiges of unwanted debt. For those producers, unlike CVE, that are blind to the economic forces that are all around them and continue to add to their financial burden, a probable unwanted M&A may be in their future at lower valuations than they and their shareholders would likely have wanted (eg HSE by CVE)
CVE looks to be doing the right things and making the right moves at the right times with the hand they have been dealt including pausing shareholder return increases when they were not prudent.
GLTA
retiredcf wrote: Thinks energy stocks are "dirt cheap by any measure." She also correctly predicted that the Fed would indicate going higher for longer. GLTA
Oil could reach US$105: Strategist
Laura Lau, CIO of Brompton Group, joins BNN Bloomberg for her view on markets. She says labour data is improving but oil prices are concerning, which could prompt higher rates for longer. She is bullish on Canada's O&G industry.
https://www.bnnbloomberg.ca/video/oil-could-reach-us-105-strategist~2771023