Interest rates, inflation and stock market volatility will all likely continue to rise as we head further into 2022. To help investors through this challenging time, Bloomberg recently turned to Sightline Wealth Management Senior Investment Advisor Katherine Gordon for insight on where to invest $100,000 right now.
Currently, Gordon believes sectors that typically benefit from rising rates and can push through costs to consumers might be an attractive option for investors. One sector that falls into this category is energy. However, it is important to pick the right type of assets in this arena.
“We don’t believe that the big push to sustainable, carbon-free power through renewable energy sources, while admirable, is ready for prime time,” Gordon tells the publication. “The infrastructure required to capture, store and transmit clean energy is significantly behind the dream of a fossil-free energy world, especially in emerging markets.”
Rather, Sightline believes that the transition to a carbon-free environment will take longer than anticipated. This paired with falling reserves and an increase in demand will cause oil prices to continue to climb, making some oil companies a very attractive option for portfolios.
“With rising oil prices, oil companies have strengthened their balance sheets, and many enjoy 5% and higher yields,” she explains. “Some of the attractive mid-stream oil companies specializing in the transportation and storage of oil products have yields approaching 7% to 8%.”
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