01-14-2015, 02:28 PM
(This post was last modified: 01-14-2015, 02:30 PM by hendi_alex.)
My only caution is for patient, gradual accumulation. IMO, XOM could easily see $75 per share, so there is no reason to be overly aggressive in thinking that today's price might be a bargain. Most of my energy bet is fairly aggressive, and is also intended to be transient. The buys for the long term pile are accumulating at a very slow rate, as this energy collapse is likely just getting started. Crude output in the U.S. is supposed to grow dramatically through this year, with no real slowing before 2016 at the earliest.
At some point we may also have to consider a contagion effect, as all of the oil producing countries are getting hammered day after day. There is the risk of sovereign default, of political instability, banking risks, and lots of other possible pitfalls tied to the energy collapse.
At some point we may also have to consider a contagion effect, as all of the oil producing countries are getting hammered day after day. There is the risk of sovereign default, of political instability, banking risks, and lots of other possible pitfalls tied to the energy collapse.
Alex