fxtrader07

Negative Trend for Oil Exploration and Production Stocks

analysts were slow to revise upward when oil went up and were slow to revise down when oil and gas tanked. however, most oil and gas stocks never reached bublle valuations of any kind. in fact i would very much challenge your notion of an 'energy bubble'. what we have seen is the first(!) echo of a dollar and credit bubble starting to unwind, reflected in a rise of formerly depressed commodities (overvalued dollars bought too much of a barrel of oil). Now we see a healthy correction. Most e&p companies can live with oil at 80-100. heck, cop and apc and others will make a ton of money from $90 oil.
valuations are reasonable to dirt-cheap in this sector as long as you do not ecpect oil to drop below 70 for any sustained period of time. Howvere, if that were to occur, I suspect the entire stockmarket would crater by 50%+ as that would signal a global depression unheard of since the 1930s