Production of coal dropped by a record amount in 2016, reports Bloomberg. China, the world’s biggest energy consumer, burned the least coal in six years and use dropped in the U.S to a level last seen in the 1970s.
Oil prices and energy stocks are disconnected from market fundamentals. Growth in global demand is exceeding both its historical average and the rate of supply growth. But the sector’s prices are depressed.
Why isn’t the market pricing in the fundamentals?
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We think there are ample catalysts for ongoing corporate earnings growth, and think economic growth is broadening to more cyclical parts of the economy and outside the U.S.
According to the Wall Street Journal, the top player in Africa’s fast-growing smartphone market isn’t Apple or Samsung. It’s Transsion, an obscure Chinese manufacturer that won customers by offering handsets with features targeted to local markets.
Strong 2016 performance and a sharp rally in credit spreads have prompted some investors to
take a cautious view of high yield bonds. However, we believe this asset class remains attractive as part of a fixed income allocation, particularly as the US Federal Reserve looks to raise interest rates. The key is to approach the asset class thoughtfully.