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Related News...time to invest? I'm thinking not just yet, though if Exxon maintain it's dividend payment these energy stocks may become the place investors "reach for yield" (9%-ish right now).
As the one of the few places not part of the market's current irrational exuberance, and where there is "blood in the streets" it is time to buy oil and nat gas.
Unless you believe ( incorrectly ) that no one will ever again fly in an airplane, drive an internal combustion engine automobile, or heat their house with anything other than solar or geothermal
It is unclear if XOM will preserve the dividend as their strategy of increased capital investments hit the Covid Wall, but their are lots of other companies whose share price will rise as the cost of oil goes up when the economy gets back to more nearly normal.
I would not bet on AMC surviving, and the future of the shopping mall is very uncertain, but PXD, EOG and CVX will survive until "alternative energy" takes over. This is at least ten years away, and probably longer.
I'm still licking my energy wounds. A few months ago I sold out and moved the funds into SZC, a CEF that used to be energy focused but is now shifting to more of a mix that includes renewables and infrastructure. The discount was massive at the time (and still quite favorable) and so I thought it gave me the best shot to recoup some very serious losses in the energy space. Happy so far.
The upstream segment of energy got hammered this year. Looks like there may well be some daylight ahead for survivors, especially with vaccines on the way. So, attached my seatbelt and bought a little FANG in late October (YOC = 5.61%).
Almost 4 years of no activity on this thread. As good a contrarian signal as any! I'm considering a small starter position because I believe energy is a good long term play. Also going to look for CEF's
Comments
Exxon Faces Historic Write down After Energy Markets Implode
Unless you believe ( incorrectly ) that no one will ever again fly in an airplane, drive an internal combustion engine automobile, or heat their house with anything other than solar or geothermal
It is unclear if XOM will preserve the dividend as their strategy of increased capital investments hit the Covid Wall, but their are lots of other companies whose share price will rise as the cost of oil goes up when the economy gets back to more nearly normal.
I would not bet on AMC surviving, and the future of the shopping mall is very uncertain, but PXD, EOG and CVX will survive until "alternative energy" takes over. This is at least ten years away, and probably longer.
VGENX pays a Trailing Twelve Month yield of 5.07%
XLE 12 month yield of 10.86%
FENY 12 month yield of 9.78%
With that said, investing an energy fund feels like I am investing in Sears.
Part of me thinks I should, but part of me knows I shouldn't.
Seems to me companies that use it as an input.
Chemical companies = FSCHX
Transportation companies = FSRFX
Manufacturing / Industrial companies = FCYIX
Utility companies = FSUTX
STOCK STRATEGIST INDUSTRY REPORT
https://barchart.com/etfs-funds/quotes/XLU/overview
Energy Sector and AI:
utilities-backdoor-play-ai-trade