Oil and the entire conventional energy sector are currently so unpopular that the magazine “The Economist” announced “The End of the Oil Age” in September this year. Remarkably, it happened before, in 2003. Over the next five years, oil prices soared from below $ 30 a barrel to $ 150 – and with it so did energy stock prices.
The oil sector is extremely unpopular
It will probably be very similar this time. In any case, there are numerous good reasons for this, as we can see in the two most recent monthly issues of my stock market letter Crisis-proof Have presented investing in detail.
This is how bulls are announced
Bombed out, undervalued and hated. In this way, current events in the energy sector can be brought to the point. It is precisely this mixture that is typical for the final phase of soil formation. This is how new long-term bulls are heralded – bulls mind you, not irrational speculative bubbles as you see them in large areas of the stock market right now.
That was the last time it was with gold and gold mining stocks in the summer of 2018, when the gold price was again below $ 1,200 ounce and Roland Leuschel and I advised our readers to get started. There was very little interest in this excellent buying opportunity at the time. It’s no different now in the energy sector, and it’s not going to change anytime soon, I’m sure. Instead, the focus of most investors is on the extremely and sometimes absurdly overvalued stock market darlings of the technology sector, which shows all signs of a speculative bubble; a bubble even bigger than the one in 2000.
Will the tech sector fare like Schlumberger?
Do you know Schlumberger? Schlumberger is the largest oil service company in the world. And what you might not think is possible: in the 1970s, this company and its shares – at least in the USA – were as well known and popular as Apple or Amazon are today.
In view of the great popularity and fundamental overvaluation that a handful of technology giants have achieved in the current stock market cycle, knowing the story that Schlumberger has to tell is extremely instructive. That is why I am giving you crisis-proof investing in my stock market letter a look back at the fortunes of Schlumberger and the Schlumberger share.
With this background knowledge, you will find it easier to understand what is happening on Wall Street. And that is important, because there is never anything really new on the stock market, only variations on the same themes over and over again.
Now is the time to make your first purchases
I made my first buy recommendation in the oil sector four weeks ago. Since then, the share has risen by 31.5%. Nevertheless, this paper still offers you an excellent long-term buying opportunity, at the latest after the next correction, which will of course be given on the way up.
New strong buy signal for gold mining stocks
In addition, my gold price range indicator has now given a buy signal for the precious metals sector again. That fits perfectly, because after a correction of around three months, investor interest in this sector has cooled significantly again. You can also find out which mining stocks you should definitely buy now in my stock market letter Crisis-proof investing – now for 30 days free of charge.
I wish you a nice weekend,
Claus Vogt, Editor-in-Chief of Crisis-Safe Investing
P.S .: A strong buy signal has just been given for a very important Asian stock index. More on this in the current monthly edition that has just been published of crisis-proof investing.
P.P.S .: If you want to get through this crisis week after week, please request the free Claus Vogt market comment here today easily with your email at.
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