Lee Munson on the Goldman Sachs Fraud Settlement and the market’s health:
Stocks had their worst day in weeks, with the Dow off more than 260 points. Where will the market go from here? Joe Battipaglia, Michael Cuggino, Lee Munson, Stephen Moore and Larry Kudlow discuss.
Washington (D.C.) Business Journal
Lee’s article originally appeared in the New Mexico Business Weekly. It was so well received that it has now been printed in the Orlando Business Journal, where it is no longer behind a subscription wall.
Assessing the market action from the floor of the NYSE, with Lee Eugene Munson, Portfolio Asset Management; Rick Bensignor, Execution LLC; and CNBC’s Scott Wapner.
A client came in this summer and told me her son was entering college. Because her son was 18, he could access the money in his custodial account, and she wanted to know how to discuss it with him. Keep in mind each state has different age limits on custodial accounts that range from 18 to 21. There are essentially three scenarios that can play out.
Lee Munson and Patrick Kirts assess volatility in energy markets. Published on Seeking Alpha.
After seeing the historic volatility in oil over the last year we at Portfolio Asset Management asked a simple question: How should we take on risk in the energy markets? Warren Buffett once said, “Risk is not knowing what you’re doing.” Others see risk as the chance of permanent loss. We agree with those ideas, so in this context we need an investment well positioned to handle the uncertainties of the oil market.
First, we don’t know where oil prices are going in the short term, and that means companies extracting or producing oil (E&P’s) have uncertainty in earnings. Second, the end user (you, me, and China) is under pressure. We saw Exxon exit the gas station business this year as competition increased. Refineries and retail sales operations do not excite us. Third, political uncertainties are at fever pitch.
Oilfield services contractor Schlumberger is the Switzerland of the energy industry. By focusing only on servicing fields, they gain the trust of their largest client base, independent oil companies, by not competing with them. National oil companies, which control 60% of the world’s reserves and are its second largest client base, do not want an integrated oil company competitor managing their oil fields. Even the large, integrated oil companies depend upon their services.
Over the past four decades, Schlumberger has built an international management team and workforce. The ability to share and act on innovation is at the core of their culture. This is in direct opposition to many competitors, who rely on management from their home countries.
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