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> $XLE for those that want to pick up cheap stocks. A nuance is that you don't want to buy into these stocks while people are moving away from vice stocks. Ho
by maest 7y ago
> $XLE for those that want to pick up cheap stocks.
A nuance is that you don't want to buy into these stocks while people are moving away from vice stocks.
However, once the trend is stabilised and there are no more marginal investors to adopt a vice-free portfolio, then you should buy all the vice stocks as they will have a more favourable discount rate.
- H8crilA 7y agoIt's already the cheapest segment of the S&P 500: https://www.gurufocus.com/sector_shiller_pe.php https://www.gurufocus.com/sector_shiller_pe.php Timing the exact bottom is hard.
- scarmig 7y agoI remember immediately after Deepwater Horizon, RIG dropped something like 50% to $40 a share or so. I invested heavily in it, proud of my own savviness and cynicism. That worked out well.
- perl4ever 7y agoI found that investing in BP when people were at their most pessimistic about the well being capped did work well. Unfortunately, following up that success by buying into TEPCO once it had dropped by half after their accident turned out not to be a good move. However, one may console oneself that it was a public service in providing some cash to the Japanese pension funds, proverbial widows and orphans and whatnot that were selling at that time.
- phkahler 7y agoIMHO the price will only be low while people are selling. You dont want to wait for that downward pressure to stop. You never know how fast it will bounce back.