Energy Sector

[lord_kinbote]

Who out there has been making stock purchases in the energy sectory during the fire sale?  I dove into Ethanol and a specific shale oil services company.  The entire sector has been hammered and I think the bottom for oil is not going to stop until we hit the 40s.  I hope I am wrong, in regards to the bottom.  I think Ethanol will rebound once earning statements are produced - record production due to increased demand, but currently following oil in its fall down.  

I probably wish I would have waited and made my purchases this week/month while oil is at new lows, but hey I figured we had already found a bottom a month ago.  Not currently fun to watchin, but hopefully it will be one hell of a party when oil rebounds.

[mongstradamus]

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@akula wrote:

Who out there has been making stock purchases in the energy sectory during the fire sale?  I dove into Ethanol and a specific shale oil services company.  The entire sector has been hammered and I think the bottom for oil is not going to stop until we hit the 40s.  I hope I am wrong, in regards to the bottom.  I think Ethanol will rebound once earning statements are produced - record production due to increased demand, but currently following oil in its fall down.  

I probably wish I would have waited and made my purchases this week/month while oil is at new lows, but hey I figured we had already found a bottom a month ago.  Not currently fun to watchin, but hopefully it will be one hell of a party when oil rebounds.

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i am not really into sector plays , I am thikning of probably buying some international etfs though they are down an good 2%+ today , buying when everybody is selling hopefully will win out in the long run :-)

[lord_kinbote]

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@mongstradamus wrote:

i am not really into sector plays , I am thikning of probably buying some international etfs though they are down an good 2%+ today , buying when everybody is selling hopefully will win out in the long run :-)

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That's the same principle I am applying to the energy sectory  Oil glut is dragging down all markets, but overall slump in global economy..  Well let's just say, going to have to keep your nose up for a while.  Good luck to all longs!

[mongstradamus]

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@akula wrote:

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@mongstradamus wrote:

i am not really into sector plays , I am thikning of probably buying some international etfs though they are down an good 2%+ today , buying when everybody is selling hopefully will win out in the long run :-)

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That's the same principle I am applying to the energy sectory  Oil glut is dragging down all markets, but overall slump in global economy..  Well let's just say, going to have to keep your nose up for a while.  Good luck to all longs!

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hah energy sector isn't diversified enough for my liking but good luck!!! the only sector etf i have is some shares in healthcare etf its been doing pretty well for me. 

[lord_kinbote]

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@mongstradamus wrote:

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@akula wrote:

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@mongstradamus wrote:

i am not really into sector plays , I am thikning of probably buying some international etfs though they are down an good 2%+ today , buying when everybody is selling hopefully will win out in the long run :-)

---

That's the same principle I am applying to the energy sectory  Oil glut is dragging down all markets, but overall slump in global economy..  Well let's just say, going to have to keep your nose up for a while.  Good luck to all longs!

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hah energy sector isn't diversified enough for my liking but good luck!!! the only sector etf i have is some shares in healthcare etf its been doing pretty well for me. 

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In regards to healthcare, I went in on GNW after their LTC fiasco dropped.  I bought on the cheap, but I think for the next two quarters, we are going to continue to see the write offs in regards to the 2 billion.  The only ETF's I have currently is in relation to 401k plan, but I am seriously thinking about USO ETF once oil has found a bottom.  I agree though, ETF's are a good place to be in today's market.

[mongstradamus]

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@akula wrote:

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@mongstradamus wrote:

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@akula wrote:

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@mongstradamus wrote:

i am not really into sector plays , I am thikning of probably buying some international etfs though they are down an good 2%+ today , buying when everybody is selling hopefully will win out in the long run :-)

---

That's the same principle I am applying to the energy sectory  Oil glut is dragging down all markets, but overall slump in global economy..  Well let's just say, going to have to keep your nose up for a while.  Good luck to all longs!

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hah energy sector isn't diversified enough for my liking but good luck!!! the only sector etf i have is some shares in healthcare etf its been doing pretty well for me. 

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In regards to healthcare, I went in on GNW after their LTC fiasco dropped.  I bought on the cheap, but I think for the next two quarters, we are going to continue to see the write offs in regards to the 2 billion.  The only ETF's I have currently is in relation to 401k plan, but I am seriously thinking about USO ETF once oil has found a bottom.  I agree though, ETF's are a good place to be in today's market.

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Healthcare is less than 5% of my overall portfolio so no big deal for right now. I am trying to be some where around 40% large blend, 10% large value , 10% small value, 20% international large blend and 10% international small cap and then 10 % with whatever sector fund right now i am leaning toward healthcare and reits 

[polecat87]

Oil (and energy in general) is a tricky sector. If I had been more brave a while back, I would have short sold oil stocks because the crash was inevitable- whenever the pundits start talking about "the days of cheap gas are over because..." that's when you know the prices are going to tumble. The problem with oil is that what happens today (in terms of supply/demand, logistics, etc) may  not  have an economic effect for a few years. It's like a wave which takes time to crash upon the shore.

For those too young to remember... in the late 1970's, early 80's gas was at record highs- books were talking about us running out of oil in 10 years, there was turmoil in the middle east, emerging markets were using more oil, etc, etc. Well, gas prices tumbled and stayed low throughout the 80's (under $1). Energy might be a good sector long term, so if you are looking for the long term- it's probably a good investment. Just don't look for  a quick turnaround- countries whose economy IS oil expect a certain revnue from oil and when prices crash, they open up the floodgates even more to meet their revenue goals which causes prices to tumble further.