Set Your TV on August 27, 2017 For Sunday Morning Weekend Today in Central NY on NBC 3
8/23/2017 12:00 PM
OIL STOCKS HAVE UNDERPERFORMED THIS YEAR SHOULD YOU BUY OR SELL THEM?
- Energy stocks will continue to be a volatile sector so what is your time frame to own them?
REASONS TO BUY:
- Oil stocks pay attractive dividends which are quite compelling compared to investment alternatives
- There is consolidation in the industry in order to lower debt and increase efficiency
- Bankruptcy rates among the oil companies are declining.
- Oil prices appear to have stabilized between $40 to $50 a barrel
- Averaging your cost basis
REASONS TO SELL:
- There are record supplies of oil and the U.S. continues to produce additional output
- There is an abundance of oil worldwide
- Investors sentiment is very negative
- Oil stock prices may underperform for the next 3-5 years unless demand increases and supplies are reduced
- Oil companies estimated earnings may continue to decline and stock prices may drop further