You need it in recession, you need it in inflation and you need it for just about every thing. Every new born is competing for it. Non-renewable energy resources are limited and at the moment feasible then altenrate or renewable energy resources. I think the energy sector as a whole will outperform the general market in next year. Just dont forget that energy sector includes: Oil, Natural Gas, Coal, Solars, Wind and other sources. I think it would be prudent to have some exposure to the area. I will wait till tomorrow near-market close to start 5% each postion in these energy related names:
Coal: ACI, ANR
Nat. Gas: EOG, CHK, PXD
Oil Services: TTES, LUFK
Alt. Energy: BWEN, JASO
I am not comfortable seeing crude at current $123 level but if even with slower growth in US it is not halting crude march what if US gets back on solid footing by next year. On the flip side everything that has energy as input and is unable to pass the cost is going to suffer. I am giving energy a try. All pullbacks need to be bought. Just remember to play small and diversify.
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