Over the last five years, a difficult operating environment has hampered midstream energy companies and contributed to declines in distributions and stock prices. However, we believe that today midstream companies are at an important inflection point, poised to resume distribution growth that should attract favorable investor attention.
Two key measures of the health of the banking industry have shown significant improvement and could point to continued solid profitability in the Financial sector in 2019 and beyond.
As factory automation systems appear in factories throughout the world, Japanese companies are slated to be major beneficiaries - both as producers and users of robotics.
Over the past decade, U.S. natural gas utility and pipeline companies have significantly increased investment in their infrastructure networks. We believe higher investment is a positive catalyst driving earnings growth for many natural gas distribution companies operating under rate of return (ROR) regulation.
Over the last decade, strong growth in production has allowed the U.S. to become a net exporter of natural gas. Both pipeline exports to Mexico and liquefied natural gas (LNG) exports to the rest of the world, especially Asia, have been growing rapidly, and significant further growth is forecast.
Tourism is a growing industry in Japan, and it has the potential to contribute meaningfully to economic growth over the next decade as the country deregulates the industry, opens casinos, and welcomes foreign visitors to the Olympic Games in 2020.
Over the last two decades, the Financials Sector has become much more diverse. Financial companies operating in markets where growth is being driven by new processes and technological innovation have become an important part of the sector, offering investors high growth potential and additional diversification.