It is always gratifying when something one is pondering is confirmed by a “legitimate” source.
Scanning stock metrics, I find the best values to be in petroleum and natural gas- exploration, refining, and transport of fossil fuels. In the last few days I bought BP and Valero. Meantime, everyone else “thinks” fossil fuels are dead, and electricity is the wave of the future to power everything. Except that, where does most electricity come from? Are any electric airliners on the horizon?
It is only a matter of time until people start flying just like they did before COVID-19. The end of lockdowns worldwide will cause more driving. Oil and gas use will go nowhere but up.
That is what I have been thinking, anyway. Lo and behold, an article last night was “Trade of the Decade- Sell Overbought Tech, Buy Energy.” It compared the high valuation of tech stocks to the low valuations of petro, natural gas, refinery, and pipeline stocks. It recommended selling techs to buy energy group stocks.
The article (from a private investment service) noted that traditional energy companies are hedging their bets by also investing in renewable sources. So in investing in stodgy petroleum companies, you also have a stake in sexy clean energy projects.