
Originally Posted by
humble_pie
i keep wondering why everybody is buying so much energy. Or perhaps the ones who are not buying are not posting, so we are getting a skewed view.
we're in the grip of a commodities downturn & it's not a passing breeze. Last night china again ratcheted down growth forecasts. These days apparently china is even shipping surplus copper inventory to europe. That's copper she's already bought & paid for, but now realizes she won't be using soon.
it's true that energy prices have fallen into the trash can, but just because energy stocks are cheap doesn't necessarily mean they are good buys.
the stocks i'd make an exception for are the companies with strong dividend histories, low debt & strong options. A dividend-plus-option strategy will carry an energy non-performer across the rubicon.