• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 4 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 22 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 21 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 23 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 22 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 21 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 23 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 2 days Itt looks like natural gas may be at its lowest price ever.
  • 1 day Saudi A to Splash $100 Bln on India
  • 2 hours Washington Eyes Crackdown On OPEC
  • 2 days Amazon’s Exit Could Scare Off Tech Companies From New York
  • 1 day NEW FERUKA REFINERY
  • 2 hours Can the World Survive without Saudi Oil?
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



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