Investing Topics: Investment Strategy

By the end of 2016, energy companies will lock in the lion’s share of an estimated $600 billion in contracts for new infrastructure to process and transport surging US oil and gas production to market.   This construction boom creates an unprecedented opportunity for well positioned energy companies such as Dominion Resources (NYSE: D), which recently proposed a 550-mile pipeline to carry cheap shale gas to energy-hungry North Carolina and Virginia. (See Five Big Deals to Build Wealth.)   The pipeline project has stoked the usual opposition from environmentalists and concerned citizens who, by reflect, don’t want any energy-related infrastructure in their backyards.   Ironically, utilities have answered environmentalists’ call for more renewable energy, increasing wind generation from 6 billion to 168 billion kilowatt-hours between 2000 and 2013 and solar-power capacity by 70 percent since 2013. That’s a clear demonstration of how the best US utilities have walked both sides of the street in the debate over fossil fuels and renewable energy. As long as these companies earn a fair return on investment, they’ll continue to reward us with rising earnings and dividends.

Canadian REITs trade at reasonable valuations, offer superior yields and generally operate more conservatively than their US peers.

Perhaps those dastardly short sellers aren’t so smart after all.

The Alerian MLP Index hits a new high, the DJUA recovers and many of our value names have soared. This summer's volatility shows why it pays to wait for the right price to buy.

Four more Portfolio holdings report, plus we take a look at the Kinder Morgan Mega-Deal and SCANA Corp's negotiations with South Carolina regulators.

The seller's market for bonds favors dividend-paying equities, but investors need to remain disciplined and avoid overpaying for quality.

While the partisan battle for the US Senate this November makes headlines, the real action for investors is in the gubernatorial elections. Winning governors will appoint state regulators, who set policy for everything from mega-mergers and customer rates to carbon dioxide emissions. Much will depend on what happens in the six states where incumbents look vulnerable: Connecticut, Georgia, Hawaii, Illinois, Kansas and South Carolina. Picking the best opportunities to bet against short sellers helped us to book a 52 percent gain in Windstream Holdings (NSDQ: WIN) and a 58.2 percent profit on Enel (Milan: ENEL, OTC: ENLAY).  We expect our latest addition to the Aggressive Income Portfolio to also confound short sellers and reward us with solid returns.

We sold Aggressive Income Portfolio member Windstream Holdings (NSDQ: WIN) for a roughly 52 percent profit since October 2013, and look at four other companies facing challenges.

Earlier this summer, momentum chasers bid the stock price up to an all-time high, but now's the time to invest in this exceptionally solid electric utility and pipeline owner at a favorable price.

Don’t panic! The long-awaited correction has finally arrived, giving patient investors an opportunity to pick up high-quality utility stocks at reasonable valuations.