• 4 minutes Your idea of oil/gas prices next ten years
  • 7 minutes WTI Heading for $60
  • 13 minutes Could EVs Become Cheaper than ICE Cars by 2023?
  • 59 mins Pros and Cons of Coal
  • 8 mins Why does US never need to have an oil production cut?
  • 11 hours US continues imports of Russian gas which it insists Europe should stop buying
  • 17 hours Is California becoming a National Security Risk to the U.S.?
  • 3 days Germany Discusses Lifting Ban on Deporting Syrians
  • 18 hours Regular Gas dropped to $2.21 per gallon today
  • 13 hours Warren Buffett
  • 43 mins Oil Prices
  • 9 hours And Just Like That, Everybody Stopped Talking About $100 Oil
  • 1 day Trump administration slaps sanctions on Saudis over Khashoggi's death
  • 2 days Pence says South China Sea Doesn't Belong To Any One Nation
  • 3 days Anyone holding Nvidia stock?
  • 2 days Commission: U.S. Could Lose Wars With Russia, China
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

Forget Momentum – 2014 is About Value

It’s been a tough winter, and not just because of the weather.  The markets have given us opportunity but it’s been a barbed-wire wrapped one:  Big moves down have looked impossible to buy and have sent me running for conservative, dividend paying stocks.  

But this latest swing bringing the Dow again above 16,000 looks equally dangerous.  Once again it strikes me that the only reasons to buy stocks are as an arbitrage against surprisingly strong bonds – as long as that 10 year yield hovers near 2.5%, you’ve got no choice but to invest in stocks.  

I’ve been trying to relate this bond-arbitrage idea to the oil and gas stocks I cover too; there are prices at which I want to own both the beta plays on domestic production of shale oil and the higher paying (and safe) dividend stocks more often represented by mega-cap integrated oil companies.  2014 is not going to be like 2013 – I imagine a yo-yo, range-bound market that will force us to buy value when it comes and not be afraid to sell it when it rallies.  Unless there is a change in Fed policy (and with Janet Yellen at the helm this is more than unlikely), I cannot buy any stocks blindly depended upon any production thesis, no matter how strong.  Momentum is out for 2014 – I want value.  

Luckily, there is still some value to be had in the market today, even with the Dow at relatively lofty levels – but they’re…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




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