SALT Conference Notes

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Reade Griffith Founder of Polygon

“It’s nice to hear people talking about Europe in a positive way. We’re really seeing growth in a broad way you haven’t seen in 5 or 10 years. The political risk in Europe is coming down. Europe is in the 3rd inning of a recovery. The US, depending on Trump, is somewhere between the 7th and 9th inning.”

 

Doug Rachlin of the Rachlin Group – Neuberger Berman:

“For the first time in years, petrochemical plants are coming back. Seven new plants are coming along the southeast coast. We’re very excited about these petrochemical plants coming online. It’s pretty obvious coal is declining and no matter what Trump says, coal is not coming back. Their share of power generation is going to continue to decline. Nuclear is also going to decline. Solar and wind will continue to gain share, but the energy source that stands to gain the most is natural gas. With oil trading between $45 and $50, the leading MLPs are highly profitable today and will continue to make a lot of money.”

 

Bruce Richards of Marathon Asset Management:

“Europe has been the most uncertain region. That’s all put to rest right now. All of a sudden we have stability in France, in Germany, in the Netherlands—and more political uncertainty in the United States. Europe is the place to invest, because it’s been very much underinvested.

 

Former Fed chair Ben Bernanke

On inflation:

“The reflation trade was probably overdone…Inflation has been below target for a while. It’s been unexpectedly difficult to get inflation up.””

On political risk

“It always puzzles me a little bit that markets are very blase about political risk until the last moment.”

On tax and infrastructure

“I’m not counting on major changes in the tax code or infrastructure.”

Troy Gayeski of Skybridge Capital

“Europe has been a long stretch of either disaster or disappointment….You’ve finally got attractive growth, better inflation data, reasonable valuations and much better earnings prospects.

Sources: 

https://finance.yahoo.com/news/rolling-update-salt-conference-172501205.html

https://finance.yahoo.com/news/big-money-pros-predict-next-big-trade-223834609.html