Despite the markets’ push to record levels, energy stocks have been locked into a bearish slump for the past two years. With natural gas plummeting to an all-time low in the summer of 2012 and crude contained by slow economic growth, energy stocks have been big underperformers. That shows up in the sector’s 3% gain in the past five years, 12% gain in the past three and just 7% gain in 2013 against the S&P 500’s 20%.#-ad_banner-# But with natural gas… Read More
Despite the markets’ push to record levels, energy stocks have been locked into a bearish slump for the past two years. With natural gas plummeting to an all-time low in the summer of 2012 and crude contained by slow economic growth, energy stocks have been big underperformers. That shows up in the sector’s 3% gain in the past five years, 12% gain in the past three and just 7% gain in 2013 against the S&P 500’s 20%.#-ad_banner-# But with natural gas trading well above its multi-year low and crude recently breaking above $100, the stage could be set for a rebound. One of my favorite ways to cash in on the energy trade is with offshore drillers. I’m bullish on the offshore drilling industry because that’s where most of the new oil is being found. In the past decade, more than 40% of all newly discovered oil was found in ultra-deep water, bypassing both onshore and near-shore discoveries. Big finds in the Gulf of Mexico and off the coasts… Read More