Michael Fitzsimmons

Oil & Gas Equipment & Services ETF

Possibly. That said, there aren't many oil services companies with PE's over 20, yet they are making net income hand-over-fist and growing their earnings at nice growth rates. What other sector of the market is doing this other than other oil and nat gas related investments? Financials? Consumer staples? Health Care? Nope. Energy is where the action is. For an historical reference, check out the oil services stock performance in the 1970's with that of the broad market. Now, that ended with the end of the OPEC embargo and oil prices fell dramatically. That said, that was a POLITICAL energy crisis. Today, we have a supply/demand driven energy crisis. Oil will never fall again like it did after the first OPEC embargo. IMHO.

Oil & Gas Equipment & Services ETF

I think the oil service sector is the #1 investment option for investors today. I cannot make a case for any of these stocks being over-valued at current prices. The outlook for energy is so bullish, the outlook for a sane energy policy in the US so bearish, that these companies will out-perform the overall broad market averages by leaps and bounds for years and years to come. Oil has become the new world currency (replacing the weak US dollar), and these companies are the printing presses of this currency. They actually have more power over the US economy right now than the Federal Reserve. This will continue until the President and Congress:

1) acknowledge peak oil
2) adopt a rational energy policy to deal with it.

Here is a good start:

seekingalpha.com/artic...

All that said, oil services funds/ETF's sometimes have violent corrections to shake out the weak-of-heart. These can happen any time and there is no sense trying to time things. Just buy em and hold em.