Q. From your comments you clearly expect to see more pressure on energy stocks. Why shouldn’t we just sell everything now and wait for a bottom?
A: Fair question. There are basically three reasons. First, market history teaches us that when energy does hit a final bottom, spotting it will be much more a matter of luck than insight or skill. And in any case, it won’t really matter much since anyone who’s invested within say 10 percent or so of the bottom will realize almost all of the upside from the recovery, provided they’re in the right stocks.
It’s also true that the hardest time to invest emotionally is likely to be at the bottom, which means almost no one is going to make that move to buy there. The best way to avoid that kind of paralysis is to scale into positions in best in class companies gradually when prices are low, i.e. close to the bottom as we’re doing now in Energy and Income Advisor.
Your complete guide to energy investing, from growth stocks to high-yielders.
In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.
Elliott and Roger on Mar. 31, 2020
Balanced portfolios of energy stocks for aggressive and conservative investors.
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
Our assessment of every energy-related master limited partnership.
Roger Conrad’s coverage of more than 70 dividend-paying energy names.