Josef Schachter: "2013---Another Year of Roller Coaster Energy Markets"
By March 7, 2013– Published in on
In what will be a rare speaking engagement open to the public, institutional energy fund advisor and president of Schachter Asset Management, Josef Schachter, will be presenting at the 2013 Calgary Energy & Resource Investment Conference. He will be sharing market insights and thoughts, which until now, have only been available to the largest institutional energy funds.
Ahead of his speech, we were able to catch him on the phone for a sneak preview of what's to come.
Josef explained that today's markets are just a continuation of the ongoing roller coaster ride, and in order to survive, "you need to have a trading mentality."
He explained that from a seasonal perspective, "We're in the normal period as we get out of winter where the oil price usually backs off. In past years we've gotten as high as $105-$110 a barrel at the highs in February and March. This time we didn't get as high, only up to about $98-$99. Following this period after winter, if OPEC doesn't cut back production and inventories remain high, we could get a correction into the mid $70s. If that happens the S&P TSX Energy Index could back off by about 20%."
"So we're looking for the index between now and the summer to back off to about the 200-220 level, and from there we might get another trading opportunity," he added.
When asked how investors should best approach this market, Josef said, "For the next couple of years our approach is to look for trading opportunities, rather than buy and hold. I don't think we'll get the start of a lengthy commodity cycle like we had before from 1999-2008, for at least another 2-3 years, or until a number of things happen."
The fundamental conditions that need to change in order for a new energy cycle to assert itself Josef explained, is that "One, the debt crisis and issues in Europe and Japan need to resolve themselves, and two, we have to have new infrastructure in place to be able to handle the exporting of L&G and oil, so that the world price is received by domestic producers. Additionally, until we have a decent business cycle, where we have the resolution of the debt crisis and you get into a lengthy period of decent markets, you've got to have a trading mentality. You got to be willing to say 'sell'. If you don't, you're going to get hurt."
This is just a short preview of the comments Josef will be sharing at the upcoming 2013 Calgary Energy & Resource Investment Conference. Once again, his commentary is normally only available to the world's largest energy funds, but attendees of this year's conference will have the rare opportunity to listen to and meet him directly.
To register your FREE attendance for the 2013 Calgary Energy & Resource Investment Conference, visit our online registration page here: Calgary Energy & Resource Investment Conference 2013
We hope to see you there!
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