CM Outlook for Oil - January 2016
By year’s end and into 2017, we expect the world will face an undersupply of oil and tighter inventory with little to no spare capacity. This in turn should drive oil prices higher. Our best estimate is that the price of oil ends the year close to $70. With a 90% correlation between the oil service index and the price of oil, we believe, under this scenario, energy stocks will outperform many sectors of the market in 2016 and even more so in 2017.
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Disclosures: This article is not financial advice or an offer or solicitation to sell any product. CM reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.
The performance numbers referenced in this article are from the CM Value I (All-Cap Value) composite. This strategy is a time-weighted, total-return composite that primarily invests in stocks, bonds, and cash. The focus of this composite is to find undervalued securities that over time will produce above average returns with a lower degree of risk than that of the general market. Performance data quoted represents past performance.
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