Is This The Sign of a Top?
Forget Chasing The Energy-Fund Money Train Thus reads the most interesting headline I’ve seen in today’s Wall Street Journal.
Pros Warn It Might Be Too Late To Capture Big Gains in a Sector That Is Known for High Volatility By now, with oil defying both gravity and the expectation of most forecasters that oil prices would settle down post-hurricanes, you might expect the press to be getting excited about the stocks.
Instead, the same press that has been calling the housing bubble (as I did in this blog on August 5th, 2005) for 2 years, is saying “stay away.” For people paying hefty prices at the pump these days, it might be tempting to drive straight home — burning off a bit of that precious gasoline — and try to make money investing in energy-focused mutual funds.
Don’t. Meanwhile, Venezuela is threatening to seize oil fields and banish foreign oil companies from their rich fields over tax and contract issues.
And Russian oil producer Lukoil just joined India and the China National Petroleum Company in buying up foreign oil producing capacity, making a $2 billion bid for a Kazakhstan producer.
The day after the Kremlin bought yet another major Russian oil producer.
All in all, it doesn’t smell like a top in energy to me.
Jeff Matthews I Am Not Making This Up
© 2005 Jeff Matthews
The content contained in this blog represents the opinions of Mr. Matthews. Mr. Matthews also acts as an advisor and clients advised by Mr. Matthews may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Matthews’ recommendations.
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