My thought is that oil and energy stocks are at or near bottoms . 1. Do y'all agree ? 2. If yes, where would u position investment dollars to take advantage of the inevitable rebound ?
Bottom not yet but great time to start getting in as one can't predict the bottom.
If you have $50,000 start by splitting your money into 3 or 4 buying opportunities. I'm fairly young and have time to wait this out so my plan is to start getting into a few positions. Then if it goes down more I can dollar cost average and add more.
I'm also looking at companies that have had good earnings but are going down just because of the market in general is selling off. these are typically shorter term buys as they pop faster when the market turns
no bottom yet. Today's up activity due to oil price. Yesterday the futures expiration left the price down. Today its a new game, new expiration date. Iran oil hasn't even hit the market yet.
Too risky in my opinion. Oil moved on possible OPEC Russia quota talks but nothing has materialized. I like oil and gas US trusts and airlines. Kind of playing both sides on a daily and sometimes hourly basis.
Russia reported that the Saudis approached them and asked if they would be willing to join a coalition of oil producing countries promising to drop production by 5%. It'll be awesome if they all agree, but this has been tried unsuccessfully in previous decades. Greed always prevails.
This could be good news. But it could also have other implications. Such as adding a new currency to the Petro-Dollar. Which wouldn't help the US Dollar.
Yes in the past OPEC members would agree to cuts only to cheat. I think prices will recover as many of those companies that borrowed a lot of money will take a hit when the Fed increases interest rates and the loan payments start rolling in. Once companies go bankrupt then the production will decrease.
Why buy their stock...when you can buy those companies high yield bonds.....when they go bankrupt you become a stock owner anyways.....they are on sale now ....
It's interesting to see these large cap energy companies with positive balance sheets trading much lower than their value.....
If you buy a company stay with big names....they have the history and can handle these times.....
OH....expect oil to stay low.....don't fall for this BS of a 5% reduction to make the price go up....
They are starving in Venzula and Russia has no other exports....
High yield is extremely risky. Bottom not in yet nor priced in. EPS is terrible. Plenty of time to get lower prices. JMHO. The masses are starving but there governments don't care since they are living large.
Predictions to the contrary, the oil supply has been contracting...and the price just keeps going up. Venezuela oil production is completely collapsing. Its happy days for those who bought $30 oil.
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