With two black swan events occurring at the same time, U.S. shale production will correct significantly and we expect demand to recover over time.
Analysis of sentiment & technical indicators are demonstrating significant bearishness potentially priced into markets that may signal a bottom in process.
Corporate Debt Market: Payback time for 10 plus years of easy money. Equity Markets: Dramatic correction has helped to discount pending
weak data, but time is needed.
History suggests the coronavirus impact will likely be transitory, while 2019 was a story of demand destruction from slowing global growth. We remain positive on select energy participants.
The Treasury Market is signaling potential weakness while the U.S. has avoided the sharp slowdown other international economies have experienced.