• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 1 day "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 8 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 7 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 15 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 7 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 7 hours The Federal Reserve and Money...Aspects which are not widely known
  • 5 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 14 hours "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 13 hours "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 7 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 8 days Goldman Betting on Cryptocurrencies
  • 12 days Сryptocurrency predictions
Editorial Dept

Editorial Dept

More Info

Premium Content

This Renewable Energy Play Offers A Hedge Against Economic Risks

With energy stocks having bucked the market trend this year, generally going up as the major indices have collapsed, finding bargains in the sector is just about impossible. It seems like every US based oil and gas company is knocking around its 52-week high. A couple of weeks ago, despite that, I wrote that I am still bullish on big oil based on oil prices that, while choppy, have held up well in the face of a global recession threat, the fact that I’m not sure that threat will materialize, and, most of all, big oil stocks’ low P/Es relative to both index averages and their own recent history.

I still feel that way overall, but in the last two weeks, the risks to those stocks have increased a bit. The missile that hit the territory of NATO member Poland this week, wherever it came from and whatever the intention behind its launch, demonstrates the constant danger of escalation when there is a war close to NATO’s border, for starters. Then there is the fact that according to the UK Chancellor of the Exchequer, their finance minister, that country is already in recession and the reported increase in Covid in China following some easing of their “Zero Covid” policy.

So, while I am happy to maintain long positions in big oil, I am starting to trim them a little on rallies. That, though, presents the problem of what to do with the cash those sales generate. My natural instinct is to shift from those stocks that have posted big gains this…

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News