• 3 minutes Marine based energy generation
  • 5 minutes "Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Which producers will shut in first?
  • 2 hours A small trial finds that hydroxychloroquine is not effective for treating coronavirus
  • 4 hours Saudis to cut 4mm bbls. What a joke.
  • 3 hours Saudi Arabia Is Buying Up European Oil Majors
  • 2 hours The GREAT OPEC+ Agreement
  • 1 hour Trump will be holding back funds that were going to W.H.O. Good move
  • 3 hours Chinese Communist Party
  • 1 hour US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 4 hours Occidental hypocrisy
  • 2 hours Russia's Rosneft Oil is screwed if they have to shut down production as a result of glut.
  • 8 hours Sharp real pure true hard working roughneck needing work..
  • 8 hours Death Match: Climate Change vs. Coronavirus
  • 9 hours Get First Access To The Oilprice App!
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Time to Get Into Rock Solid Large Cap Dividend Payers

If you’ve missed the point of the last 2 weeks of market action, let me get you up to date:  2014 is going to be rough, really rough.  We’re going to need to go back to the defensive playbooks we haven’t used for 4 years, but which saw us through great profits at relatively little risk.  We need to go back to 2009.  

You know I am a commodity guy and I’ve written recently about the continued weakness of base metals, particularly copper and zinc, and coal, commodities I consider crucial indicators of a continuing robust recovery.  

Look at the worst performing stocks of the last two years and they are almost all commodity names, particularly coal and copper names – Peabody (BTU), Alpha Natural Resources (ANR), Vale (VALE), Freeport (FCX) – I could go on.  So what is the difference today and why am I turning so defensive on the market?  Commodity strength becomes that much more of a factor, precisely because Fed activity is beginnings its taper and strong stock index results last year seemed to ‘borrow’ gains from our current year.  

But with dropping share prices, and concurrent dropping bond yields, we’re looking at another 2009 scenario where dividend producers represent such a sharp arbitrage opportunity.  And it’s with bond-like stocks were going to find our best ideas now.  

Now’s the time to give up, and I mean entirely, on high-beta…




Oilprice - The No. 1 Source for Oil & Energy News