RE:RE:Sage Advicemasfortuna wrote: retiredcf wrote: It seems like everyone is dumping technology and piling into energy. When energy was dirt cheap, hardly anyone was recommending it and that was the time to buy rather than high flying growth stocks or highly priced renewables. Is the same thing happening here where clearly technology is not in favour and everyone is selling to buy energy as that is the only thing working? Isn't this the wrong way to look at things as you are selling technology low and buying energy high. Yes, this is indeed what happened in 2020. Right now, we think technology is attractive, but the inflation/rate problem may last a lot longer than the Covid/Opec oil meltdown. But many tech companies are very cheap, still growing, and have lots of cash. Once the interest rate fear is over, we would expect them to do quite well, and patient buyers we think will be rewarded over time. Some tech stocks can double or triple, and we are willing to wait some time for that. (5iResearch)
Ok except he forgot to mention that energy stocks are ALSO out of favour due to the eco-woke crowd. Many finacial investors won't touch them. They are trading at a 2x multiple as opposed to the 5-7x multiple in 2014. Oil is trading between $80- $90 but if you factor in inflation over the last 9 years at roughly 2%, it's the equivalent of $70 oil in 2014. Oil hit $133 in 2014...BTE for examle is trading at $7.50. It was at $50 in 2014. I think sage advice may want to flesh out their comment on energy stocks...
And the issue is not Covid/Opec (opec??? It's at max production capacity. They have been short about 2 million barrels over the last 6 months. So there cut of 2 million actually doesn't change the amount of oil o the market). The issue is a structural supply issue. It existed before the Russian war regardless of what Biden states. When he took office, oil was at $2.38 a gallon. then he publicly declared war on oil companies vowing to shut them down. And now he is going in reverse gear.