RE: Dont rushI think there is a lot of merit to what you say, cashcow. How much higher is oil gonna go than $100-$105 in the present environment. Alot of oil companies are trading like oil is closer to $70ish. And even with the discount they are trading at, I think they'll still capture most of the downside if oil drops to $90 and below.
Thats something I've been thinking about alot. The tsx is trading at 12000 with oil near $100. The tsx can easily lose 1000 points+ if oil decided to revist a more normal level like $85-$90ish, and even at $90 can anyone say that oil is cheap? Regardless of how undervalued a company may be, 95% of the stocks will trade down with the market if the global economy worsens. If you are going to invest you need to be very selective in the companies you buy.
The above being said, I still like strategically adding to dividend paying positions, on significant dips, with the cash I have coming in from my non-drip dividend payers. I'll be less likely to significantly add to higher beta positions though and favour more defensive dividend paying names and all at the same time trying to keep/build a good cash position to continually take advantage of opportunites/collect dividend payers.