Anyone investing in energy stocks?

[Dawg52]

I know energy stocks have had a great run the last couple of years but wondered what your thoughts are on the sector for the next few months. Gas prices fairly low and with spring and summer travel months approaching, prices usually trend upward. The below article tends to lean toward XLE and IGE as a way to play the sector. Any thoughts?

http://articles.moneycentral.msn.com/Investing/MutualFunds/OilAtBargainBasementPrices.aspx

 

[JustCurious]

My thoughts are I don't know and I don't care. I buy the entire market using index funds, so I don't care which sector does well this year or next.

 

[bssc]

I have about 10 energy stocks. However, I am in this for the long run and am quite happy to hold on to them for awhile, especially since they pay good dividends and most of the companys are using their profits to buy back shares.

 

[retire@40]

I know energy stocks have had a great run the last couple of years but wondered what your thoughts are on the sector for the next few months. Gas prices fairly low and with spring and summer travel months approaching, prices usually trend upward....

I've taken a hold position on my Vanguard Energy Fund (VGENX) and I plan on keeping it indefinitely, so what happens in the next few months doesn't concern me.

It's done well up to now, but it's only 2.43% of my portfolio and I don't plan on having it be more than 3% in the future. I also know that some of my other funds have energy stocks, so in reality, I have more than 2.43% of my money in energy.

As far as gas prices going up during the summer months, I would think that knowledge is already built in to the current energy fund prices. So if gas prices don't go as high as anticipated, then you may even see energy funds dropping in price.

 

[Jeb-NY]

I have had a little XLE for about 11 months. I'm mostly indexing and moving more to indexed this year but I have about 5% of my total assets in a play account (ROTH) and have about 1/3 of that in XLE. It is very volatile, a fun ride as long as you don't need the money on any given day. It is up around 9% as of Friday and has paid out another 5% or so in dividends.

Helps me deal with gas prices if I'm getting some of the profits.

Jeb

 

[Craig]

I have VGENX as well, as a long-term hold. I have no idea what will happen with energy stocks other than they will go up, and down.

I feel the same as Jeb ... helps stifle the pain when gas prices go up.


I do tend to accept the long term concept of peak oil, though regional wars and the rise of emerging markets will likely do as much to increase the value of each barrel ...

 

[Toejam]

I own shares in XOM, CVX, SNP, PTR, CEO - all pay dividends. Also have XLE (exchange traded fund). Some of my large-cap mutual funds also include XOM, CVX, and other oil stocks. That's enough energy for me. Holding for the long term as I don't know what these will do month-to-month, or year-to-year. I've also read articles both supporting and denying the peak oil theory. Don't know what to believe

 

[Craig]

Toejam, my favorite article of late was one that theorized that oil is actually created somewhere near the earth's magma, and is actually produced by the earth on an ongoing basis. I don't think there is much support for that particular theory, but who knows.


I'm still in the camp that believes the earth is only so big, there is only so much oil, and someday (who knows when) we'll deplete the oil.

'Course, I'm also in the wait-and-see, until we get more solid science camp on global warming ... as I watch an uncommon snow in Nashville ...

 

[kcowan]

I am into individual stocks for the long term. I expect to see oil above $70 again. XOM has been a great holding as well as some Canadian oil cos and exploration companies. Even some exploration income trusts.

 

[Delawaredave]

...as some Canadian oil cos and exploration companies. Even some exploration income trusts.

I'm not familiar with these areas - are there some stocks you'd recommend ? Thanks.

 

[brewer12345]

I think the midsized companies (next rung under XOM, etc.) are soem of the cheapest stocks in the market.

 

[Dawg52]

I think the midsized companies (next rung under XOM, etc.) are soem of the cheapest stocks in the market.

Any particular ones you like?

 

[Ed_The_Gypsy]

DOG52,

You are talking about trading or market timing. Naughty, naughty.

I, too, have VGENX for the long run. It has been very good to me and I have no doubt that it will be in the future, but I don't know when it will go up or down (and I am sort of in the business). There aren't too many scenarios I can imagine where oil companies won't make money in the long run. Buy and hold.

 

[Dawg52]

DOG52,

You are talking about trading or market timing. Naughty, naughty.

Yeah I know, I'm a little devil. I do very little trading, just some fun money set aside for 1 or 2 trades.

 

[eridanus]

I own CVX, SNP, PBR, and XLE. I also have some MLPs -- KMR, PAA, and DPM. I had a 2012 oil future but sold it last year.

Yes, I'm over-weighted. You shoulda seen it before I re-balanced.