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The 3 Best Mutual Funds To Play Energy Stocks Right Now
FYI: Oil prices have been cut in half in six months, hitting a large swath of energy stocks in the process. But where there’s pain, there’s usually opportunity, making now a good time to take a close look at mutual funds that offer exposure to energy stocks. Regards, Ted http://investorplace.com/2015/01/best-mutual-funds-energy-stocks-now/print
I bought XLE a few weeks ago and will add to it in my IRA. I just have a hard time believing that oil prices will be this low in a year or two from now.
@hank said Only.. if you can stand/afford to loose 15, 25 or 35% on the position (initially) and than smile about it. Been there,unfortunately.
JANUARY 09 2015 Guggenheim Investments Macro View: If the mid-80s’ supply-driven oil crisis is a guide, we should expect further declines and a prolonged period where oil prices remain depressed. Global CIO Commentary by Scott Minerd "But investors beware in the near-term. Even at $48 per barrel, oil is still a falling knife—I believe there remains another significant downside move. If we hit the $34 a barrel price target, which I believe we could, that would be another 30 percent decline in oil prices. Typically, people would rightly characterize a 30 percent decline as a bear market. We’ve already had a decline of over 55 percent from the high, so we’ve already been in a bear market, but if we started over today we’re going to have another one." Supply Shock Suggests More Downside Risk for Oil Over the past 30 years, there have been six major declines in the price of oil (defined as a greater than 50 percent cumulative decline). The current decline now stands at around 55 percent, matching the magnitude of some of the worst historical oil crashes. However, most of the past declines have been due to faltering global demand, whereas the current slump is due to a glut of oil. Therefore, the best comparable decline is that of 1985-86, when a supply shock caused the West Texas Intermediate price to plunge by more than 67 percent over the course of four and a half months. With no near-term signs of supply letting up, oil prices could continue to fall.
Comments
Yes, eventually prices will be higher. But nobody knows when.
Been there,unfortunately.
JANUARY 09 2015 Guggenheim Investments Macro View:
If the mid-80s’ supply-driven oil crisis is a guide, we should expect further declines and a prolonged period where oil prices remain depressed.
Global CIO Commentary by Scott Minerd
"But investors beware in the near-term. Even at $48 per barrel, oil is still a falling knife—I believe there remains another significant downside move. If we hit the $34 a barrel price target, which I believe we could, that would be another 30 percent decline in oil prices. Typically, people would rightly characterize a 30 percent decline as a bear market. We’ve already had a decline of over 55 percent from the high, so we’ve already been in a bear market, but if we started over today we’re going to have another one."
Supply Shock Suggests More Downside Risk for Oil
Over the past 30 years, there have been six major declines in the price of oil (defined as a greater than 50 percent cumulative decline). The current decline now stands at around 55 percent, matching the magnitude of some of the worst historical oil crashes. However, most of the past declines have been due to faltering global demand, whereas the current slump is due to a glut of oil. Therefore, the best comparable decline is that of 1985-86, when a supply shock caused the West Texas Intermediate price to plunge by more than 67 percent over the course of four and a half months. With no near-term signs of supply letting up, oil prices could continue to fall.
http://guggenheimpartners.com/perspectives/macroview/supply-shock-and-awe