Updated: September 27, 2016
Energy is a dangerous sector. With declining profits and even dividend cuts hitting some companies, it’s becoming harder and harder to invest in energy and for a reliable income stream.
But this doesn’t mean we need to avoid energy altogether—we just need to choose our stocks carefully.
I don’t see oil climbing much above its current price anytime soon, considering the major output from America-based firms and plans in Iraq and Norway to increase output. But OPEC is also looking to control pricing by limiting output, so we may see a supply/demand standoff that will keep the commodity range bound. In fact, oil has been range bound for quite a while already:
Temporary Dips and Peaks
Although WTI crude oil futures dipped to below $30 per barrel earlier this year and climbed over $50 last summer, those volatile prices didn’t last more than a couple months.… Read more