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Jim Cramer on the energy sector (IYE, OIF, XLE)

Aug. 18, 2005 3:52 AM ETXLE, IYE, OIH
Roger Nusbaum profile picture
Roger Nusbaum

One of the topics Jim Cramer mentioned on his radio show on Sirius was energy stocks, writes Roger Nusbaum. If I heard him right he is suggesting lightening up on the group (not zero exposure, I think). [The energy ETFs are IYE, OIF, and XLE.]

He thinks a top as been put in on oil. Maybe but I think earnings could go up dramatically for a couple of quarters as the oil companies sell more and more oil above $50. He said the sector's weight has doubled in the SPX and that is his exit strategy. He said energy has gone from 5% to 10%. I thought it started at 6% but that is splitting hairs on my part.

I have taken some defensive action in the sector a while back. I sold one of the tanker stocks and a more volatile E&P name. At this
point most clients own two big foreign integrated oil companies, one oil company with a little refining exposure and one of the Chinese oils. The total weight is in the neighborhood of 11%.

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Roger Nusbaum profile picture
Roger Nusbaum is the ETF Strategist for AdvisorShares. This Arizona-based professional has over 25 years of industry experience. He is also a well-known financial commentator covering ETFs, retirement planning and portfolio management for AlphaBaskets.com and at TheStreet.com. We think Roger is particularly insightful on exchange-traded funds, risk management and investing in international markets. Visit Roger's work at TheMaven (https://www.themaven.net/etf/) and AlphaBaskets (http://alphabaskets.com)

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