The New York Times on Energy Stocks

If we only knew the author’s opinion:

Shareholders may wish to take their profits before the prices erode further, but many investment advisers make a persuasive case for holding firm. In this view, cyclical ups and downs will continue, but they are mere blips that do not fundamentally alter a very long-term upward trend in prices for energy commodities and stocks.
Demand for energy keeps rising while new sources of supply grow scarcer, a reality that is unlikely to change, some fund managers and market strategists say. Fossil fuels will eventually become too expensive for everyday use, but there will be good money to be made from producing whatever power source comes next, they predict. And many of the producers, they say, will be the same companies pumping oil today. The energy industry’s knack for playing a long game, plotting strategy based on assumptions of economic, political and technological developments many decades ahead, makes energy stocks worth holding onto, the investment advisers say.

Posted by on November 6th, 2005 at 6:20 am


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