Is The U.S. Oil Patch A Value Trap?

5 May 2017   Oil Supply, USA

While the S&P 500 is up 6.49 percent , year to date (YTD), it has not brought any cheers to energy investors. Energy investors continue to see their investment bleed, as the energy sector is down 10.02 percent YTD. For the others waiting on the sidelines, the big question is whether to enter at the current levels or stay away from the energy stocks altogether. Let’s solve this puzzle! We analyze the investment rationale for the short-term investors who have an investment horizon of less than a year and for the medium-term investors, who have an investment horizon of about 1-2 years. The long-term picture is too uncertain; hence, we won’t delve into it. The short-term picture In the short-term, the equity market is dictated more by sentiment, rather than the prevailing fundamentals. After the Organization of the Petroleum Exporting Countries (OPEC) – excluding Nigeria and Libya – and […]

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