This week’s Sentiment Survey special question asked AAII members for their opinion on energy stocks. The majority of respondents were split into buy/attractive and sell/avoid camps. Nearly 37% thought energy stocks are getting attractive or are otherwise cheap. A large number of these respondents clarified their statements by saying energy stocks are attractive as long-term investments, but may not rise much over the short term. Slightly more than 39% of respondents said that energy stocks should be sold or otherwise avoided. Some cited expectations for further downside, while others pointed to excess levels of oil inventories. About 5% of respondents thought energy stocks rate as a hold right now. The possibility of Iran selling oil worldwide was also noted by some respondents as creating additional uncertainty for oil stocks.
Here is a sampling of responses:
- “I am not purchasing new shares as I believe that the energy market is in a state of flux.”
- “They will be a buy later; we need to see another dip.”
- “Beaten down badly, likely a buying opportunity.”
- “Energy stocks are down to a level that makes them a long-term buy, but in the short term they have further to fall.”
- “I feel there are further declines coming.”
- “It’s a good buying opportunity for selected energy stocks.”