Emotional Investor
03-12
Oil prices spiking and collapsing terrible time to buy oil stocks right? Well let’s just look at two stocks $Chevron(CVX)$ and $Exxon Mobil(XOM)$. So both seem to be money machines regardless of the oil price, both have buyback programs and both have paid and increased their dividends for decades. So I just keep accumulating on dips.
The story is very different for goods and services stocks that are nice to have but not essential. Prices will go up when oil spikes. So will inflation. So your dollar buys less, a double whammy. Think stocks like $Home Depot(HD)$. Is now a great time to renovate?
Escalating Tensions: Buy Oil and Sell Equities?
The conflict between the U.S.-Israeli alliance and Iran has entered a "scorched-earth" phase for energy infrastructure. Following reports of drone strikes on key processing plants in the Northern Gulf, U.S. Natural Gas futures surged 6% to $3.26/MMBTU, while Brent and WTI crude rose 3% in tandem.
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