time to buy energy stocks?

As a young investor with an old soul, I have always liked energy stocks. They make up a pretty significant chunk of my dividends forever portfolio for good reason. But energy has lagged behind this “sugar high” market all year… In September, energy was the weakest sector once again:   The purple at the top is discretionary by the way so it makes sense: When the market is overvaluing discretionary spending, it is undervaluing staples and hard assets like energy. But something is going on beneath the surface. You’ve heard me call this a smoke and mirrors economy for a year now… Are consumers really doing so well that discretionary spending should be leading the pack? I think not. And consider that gold is consistently making all time highs as the king of hard assets while energy gets crushed. I am not saying we’re at the tipping point yet, but I can tell you this doesn’t add up. And if just the first couple days of October are any indication, a reversal could be happening quite soon:   Energy is picking up steam as the market dips from its highs, dock strikes pick up and Nike whiffs on earnings. Here’s the thing: Energy isn’t a sector I typically trade actively trying to call tops and bottoms. And if it were, I wouldn’t be buying quite yet even with the last few days… But since it’s a sector I believe has long term value, I am happy to keep investing, being paid dividends to hold it and waiting for the breakout. I think, within the next 6 months, we’ll see a significant run in energy. And I am happy to wait patiently while I hold stocks that pay between 3 and 5 percent dividends. Now, if you are thinking “Wait, Nate, you are OK to just sit there and lose money on energy for however long…” The answer is no. Part of the formula has to be to use good stocks so you’re not losing money hoping for a turnaround.  That’s actually a key criteria in the dividends forever portfolio I mentioned before. My #1 energy stock is up over 28% this year:   So, don’t get me wrong… I am not talking about taking it on the chin and hoping for a turnaround. I am talking about accepting a lagging sector with good value, but still trading high quality stocks… And if the supercycle kicks off in energy like I think it will, being in a “home run” position. So to answer the question: Is now the time to buy energy? Not if you’re trading weekly options, no. But if you’re building a basket of stocks that could be your biggest winners 6 months from now, I’d say yes. Nate

As a young investor with an old soul, I have always liked energy stocks.   They make up a pretty significant chunk of my dividends forever portfolio for good reason.   But energy has lagged behind this “sugar high” market all year…   In September, energy was the weakest sector once again:   The purple at the top is discretionary by the way so it makes sense:   When the market is overvaluing discretionary spending, it is undervaluing staples and hard assets like energy.   But something is going on beneath the surface.   You’ve heard me call this a smoke and mirrors economy for a year now…   Are consumers really doing so well that discretionary spending should be leading the pack? I think not.   And consider that gold is consistently making all time highs as the king of hard assets while energy gets crushed.   I am not saying we’re at the tipping point yet, but I can tell you this doesn’t add up.   And if just the first couple days of October are any indication, a reversal could be happening quite soon:   Energy is picking up steam as the market dips from its highs, dock strikes pick up and Nike whiffs on earnings.   Here’s the thing:   Energy isn’t a sector I typically trade actively trying to call tops and bottoms. And if it were, I wouldn’t be buying quite yet even with the last few days…   But since it’s a sector I believe has long term value, I am happy to keep investing, being paid dividends to hold it and waiting for the breakout.   I think, within the next 6 months, we’ll see a significant run in energy.   And I am happy to wait patiently while I hold stocks that pay between 3 and 5 percent dividends.   Now, if you are thinking “Wait, Nate, you are OK to just sit there and lose money on energy for however long…”   The answer is no.   Part of the formula has to be to use good stocks so you’re not losing money hoping for a turnaround.    That’s actually a key criteria in the dividends forever portfolio I mentioned before.   My #1 energy stock is up over 28% this year:   So, don’t get me wrong…   I am not talking about taking it on the chin and hoping for a turnaround.   I am talking about accepting a lagging sector with good value, but still trading high quality stocks…   And if the supercycle kicks off in energy like I think it will, being in a “home run” position.   So to answer the question: Is now the time to buy energy?   Not if you’re trading weekly options, no.   But if you’re building a basket of stocks that could be your biggest winners 6 months from now, I’d say yes.   Nate

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ABOUT US:  We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Jeffry Turnmire Trading provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Jeffry Turnmire Trading are for your informational purposes only. Neither Jeffry Turnmire Trading nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Jeffry Turnmire Trading is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.  Please visit https://prosperitypub.com/terms-conditions/ for our full Terms and Conditions. Unsubscribe This email was sent to phanxuanhoa60.trade1357@blogger.com by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States Prosperity Pub