Energy Less Liked Than Financials

If there was one over-riding theme of the first half of this year, it was to go long energy and commodities and short financials.  As we all know, however, the trade has completely unraveled since July, as oil and other commodities have been decimated. 

Now that the CRB index is in a bear market, analysts are coming to grips with the fact that earnings in the stocks in the energy sector may not be as robust as previously thought.  In fact, for the first time this year, negative revisions in the energy sector have actually exceeded the pace of negative revisions in the financial sector.

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Comments

[TKTK53:]

Don't go short on financials - look back on all the years in the past when banks and financials were down and we thought our bank account and stock value was dead
What happened, they rose to levels higher than ever
If you didn't buy something today (9-3-2008) when the market took a 300+ nose dive YOU LOST OUT
TKTK53

2008 Sep 04 04:47 PM

[Jimbo:]

Oil is getting evermore difficult to extract and evermore costly. Petroleum based transportation fuels do not seem to have any real substitute in the near to medium term. "alternative" fuels of all kinds have technical and infrastructure problems that are severe. I am sitting on all my energy stocks. Investors and speculators remind me of a flock of chickens, running to and fro when they think they see a fox or possum.

2008 Sep 05 06:11 PM