Oil: I've Never Been More Bullish On Energy
Energy has been a core focus for me for years, but after a brutal downturn, sentiment is now washed out and expectations are unusually low.
I believe today’s weak oil prices are doing the work for me, setting up supply constraints just as the market assumes oversupply will persist. With production incentives fading and cyclical demand poised to improve, I see the risk-reward in energy shifting quietly back to the upside.
That’s why I remain highly exposed: not because energy feels safe, but because this setup reminds me how early bull markets usually begin.
But here's where it gets controversial... While some may argue that energy is too volatile and risky, I believe that the current setup is a rare opportunity to get in early on a potential bull market. And this is the part most people miss... The energy sector has been overlooked for too long, and now is the time to take advantage of the low expectations and high potential rewards.
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(A Way Too Long) Introduction
Energy has been a core focus for me since the pandemic. Back then, I started building energy exposure in my dividend growth portfolio due to the horrendous sentiment. Although I’m painting with
Analyst’s Disclosure: I/we have a beneficial long position in the shares of CNQ, LB, TPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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