Oil stocks. Agreed. My P and UCL did well the past two days and I have the feeling they're stocks I can just forget about and let creep up this summer. Do your DD and pick 'em. I picked these because of ultra low PE's, lotsa earnings-cash and that they're both reputedly takeover plays. Might do just as well with any of the others. Oil service, NG, power plants, etc. But if gas hits $3 a gallon you know these babies are going to be flush. Expect them tppeak just as the techs bottom in the summer which might be a good time to switch back. I do expect a substantial tech rally going into the fall as many companies will show at least modest recovery. I also plan to hold VZ this summer as it will announce it's monster Wireless IPO for the fall.
Even in a recession people will keep using phones, internet, eating and yes driving. They will also watch TV and go to the movies. The hardest hit areas could be travel, gas guzzler industries and luxury items. If I were shorting I'd pick high-class Vegas casinos, Gucci, Land Rover, luxury hotels etc. but haven't looked at them. They may already be down. |
