Prognosticator Picks Pipeline Stocks
Getting profits from the pipeline is more than a metaphor for Joseph Keating.
The chief investment officer of private asset management for RBC Bank recommends the stocks of two pipeline companies as worthy investments in a troubled time for the markets.
What's not in the pipeline? Interest rate changes, he says.
"I think (Fed officials) effectively did their job, that they changed expectations about cutting rates, and we think they're done, probably until early '09," Keating told CNBC. He added, "I don't see how they could raise rates. The fact that we're still seeing the unemployment rate rise... it's the wrong policy to raise rates."
"I really like the pipeline area," Keating replied, when asked about promising stocks. "Enterprise Product Partners is a pipeline of natural gas across the United States...one other would be Enbridge Energy Partners, which is an oil pipeline...bringing the oil from the tar sands in Alberta, Canada, down into the U.S."
- Learn more: Watch the entire interview (3 mins, 29 secs)
Disclosure information for Joseph Keating was not immediately available.