In the age of online media supported by eyeballs and ad revenue stockmarket opinionists, pseudopundits, blowhards, halfwits and dimwits are now $.10 / dozen. Anyone can play the game. Rightfully, that judgment (at least in theory) attaches to me.
Here’s the big oil and gas secret, which I now bring to the attention of anyone investing in E & P (Energy and Production) stocks and funds: Oil and energy stocks are “cyclical”. That is, they are well known to go up and down based upon conditions in the world such as growing or contracting economies, more people driving and owning houses (think China, Brazil, etc.), wars and conflict and other global factors.
Oil by the barrel prices are now “out for a spin”, driving up, down and sideways. OPEC is talking. T. Boone Pickens is talking. Everybody is talking about oil and gas because the E & P market is in flux. Just like it was in flux a few years ago. Then it stablized and continued its upward trend. Why?
Because the world continues to grow and with that the demand for energy and for products that depend on oil, such as plastics, drugs and most everything else.
Is NOW is the time to sell E & P stocks? AFTER they’ve recently taken a beating by panic sellers or those who make their living trading in and out?
Is your strategy to “buy high, sell low” on a cyclical like oil?
One thing that is certain about oil is that as fast as it has gone down it can and historically has gone up. You can look it up.
If you’re going to sell on the down low and cheap who will be on the buy side of this bad investment? Fools or smarter investors that you?
Energy is a cyclical investment but, if you study the charts, those cycles have occurred in a steady upwardly trending price chart.
If you didn’t know that when your bought in then you’re the fool.
If you sell a cyclical at the bottom or near bottom you’re the fool.
I’m not a big fan of Big Oil but until consumers demand, with their wallets, energy alternatives Big Oil will be a long term player and so should you.
Me too. I watched and waited to make a move until a few days ago. I may not have picked bottom but for the cyclical energy market I certainly waited to let the downward graph move down a good bit.