Creepy. Scary. The plunge in oil prices over the past 13 months, along with the collapse of just about any investment even vaguely related to petroleum, has created a skin-crawling, palm-sweating horror show. But the last frame of the movie may come sooner than you think. On the face of it, last week’s action in the oil pits seemed to tell the same old disaster story. West Texas crude for September delivery was settling in the $44 area, and marked a low close last seen in mid-March.
However, oil equities have shown at least some resilience. Last week, as oil was touching those lows, the Energy SPDR (XLE) was up 1.6%, and the battered Alerian MLP Index closed well off its morning lows. This is the type of positive divergence (producer stocks stable or higher, raw material lower) you see when oil is attempting to make a firm bottom. Meanwhile, I’m encouraged by a comment last Tuesday from David Rubenstein, billionaire co-CEO of the Carlyle Group, a private equity firm. In an interview with CNBC, Rubenstein — whose organization has successfully backed energy projects worldwide for decades — said: “In time, (oil) prices will come back, in time demand will catch up with supply, and in time I do believe that carbon-related energy will turn out to be one of the best investments in the world.”
Source: InvestorPlace
Related Articles:
- Dividend Growth Stocks With A Defined-Benefit Pension
- 7 Higher-Yielding Stocks With A Low Price To Book
- Don't Forget: Buy And Hold Is Not Buy And Forget
- 5 Stocks With Strong Dividend Growth Metrics
- Are Defense Stocks Good Defensive Stocks?
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There’s nothing more satisfying that getting money for doing nothing. That’s why dividend stocks hold so much appeal for portfolios. Many of...
-
We've broadened our search to the S&P 500, and also found two high-dividend stocks among the dividend yield leaders of that larger i...
-
Dividend stocks can be a great source of passive income. Not only do they deliver cash into your brokerage account on a recurring basis, but...
-
I believe in dividend growth investing and consider holding strong companies will help me going through any stock market storm. I believe di...
-
Generally speaking, the higher the yield, the higher the risk involved. Since yield is a function of share price, a failing business model w...
-
If you are retired, you have likely shifted from building your nest egg to living off your assets. That means you probably gravitate toward ...
-
With bond rates already low and the Fed hinting at rate decreases, dividend stocks are in high demand these days, as alternatives in the fix...
-
What kind of income-generating assets make the most sense? Obviously, those that appear undervalued with respect to the basket/group of stoc...
-
Warren Buffett famously quipped that if you aren't willing to own a stock for 10 years, you shouldn't think about owning it for 10 m...
-
REITs are reporting higher revenue and earnings so far for the quarter. But one of the specific metrics for profitability comes from the rat...
0 comments
Post a Comment
Post a Comment