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Energy Funds???
Old 10-12-2005, 03:51 PM   #1
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Energy Funds???

SEATTLE (MarketWatch) -- Energy stocks have just experienced a sharp but brief pullback in value. Does that mean it is time to sell or is it a buy-on-corrections opportunity? I believe it's probably the latter -- but I would be diversifying my bets.

Any comments? Recommendations out there
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Re: Energy Funds???
Old 10-12-2005, 04:44 PM   #2
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Re: Energy Funds???

It depends on what you think will happen with oil.

If oil gets cheaper, energy stocks won't do well.

If oil stays about the same, energy stocks will have fat margins for a while, but no growth (and probably negative growth due to reduced consumption).

If oil prices grow as fast as they have over the last couple years, then energy stocks will grow too.* *Personally, I think this is an impossibility.
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Re: Energy Funds???
Old 10-12-2005, 04:47 PM   #3
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Re: Energy Funds???

I think it is all about your time horizon and whether or not you can DCA. *Both hedge risk on the downside. *Nobody knows what will happen in the short run. *We have had discussions about diverse commodities exposure which some prefer.

Vanguard released a warning (if you will) about investors chasing the hot money in energy stocks = 'buyer beware' if your time horizon is not long.
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Re: Energy Funds???
Old 10-12-2005, 05:00 PM   #4
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Re: Energy Funds???

This is a good time to pull up a chair on the energy sidelines to watch what develops.* If oil comes down substantially next years profits may not look so good, at least in comparison to this years. On the other hand, I certainly don't think the energy game is anywhere near over.* Remember, the oil companies can do just fine at $40 per barrel, but going down to that level could be painful.
The entire market is flighty at the moment, better to keep your powder dry and wait for some of the days issues to settle out.* I still look for good money in the sector and I'd recommend you look at ETF's or Fidelity Selects.
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Re: Energy Funds???
Old 10-12-2005, 05:24 PM   #5
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Re: Energy Funds???

Quote:
Originally Posted by JPatrick
Remember, the oil companies can do just fine at $40 per barrel....
Yes, oil company profits will be fat at that level, but the price of their stocks already reflect that (and higher price assumptions). Oil stocks can't grow unless their earnings grow. Fat margins are not enough if you want investment growth (and I assume you do).
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Re: Energy Funds???
Old 10-12-2005, 09:21 PM   #6
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Re: Energy Funds???

Mad Money Cramer is bullish on energy.....BOOOYAHHHHHHH! That guy is hilarious. I think he may pop a blood vessel one day.
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Re: Energy Funds???
Old 10-13-2005, 02:37 PM   #7
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Re: Energy Funds???

Quote:
Originally Posted by Calgary_Girl
Mad Money Cramer is bullish on energy.....BOOOYAHHHHHHH! That guy is hilarious. I think he may pop a blood vessel one day.
It's official, time to sell energy funds. Cramer has made his predictions, so go against them and you'll make tons of cash.

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