Is it too late to buy Oil stocks?
Energy
Energy stocks are still dirt cheap and are painfully under-owned by investors crowding into index and ESG funds - offers healthy yields, investment grade balance sheets and the stocks have highly asymmetric payoff structures based on history. KCR show that when Nat Gas prices rise 100% more than Energy stocks over the trailing 3 years, Energy typically goes on to trounce the S&P 500 Index. In the unlikely event that prices do collapse, it would be due to a macro shock that would level the economy and do far worse damage to other sectors. KCR’s top ranked Energy companies include Marathon Oil, ConocoPhillips and Occidental Petroleum.
Edition: 137
- 10 June, 2022