Diligence is the mother of good luck
Nouriel Roubini, chairman and CEO at Roubini Macro Associates, discusses how a recession can impact US equity and credit markets with Francine Lacqua on “Bloomberg Surveillance Early Edition.”
Commodities and inflation measures in 2022 may run into the downside of the base effect of 2021, while industrial metals near records face the higher-price cure, a weakening China and a Federal Reserve emboldened to fight inflation. Gold appears well supported and its top competitor — rising equity prices — may be waning.
· The burgeoning energy crisis and oil’s role in it. (0:45) · How might OPEC respond? (06:45) · ‘Winners’ in the energy sector from the supply crunch (8:24)
● Modest forward earnings and FCF multiples (5-6x) offer a margin of safety and opportunity for rerating.
● Competent management team with a clear strategy for capital allocation, debt reduction, and organic and acquisitive growth.
● Attractive dividend yield over 3%.
● A classic underwhelming spin-off that offers multiple catalysts to unlock fair value.