Individual Investors Split on Attractiveness of Energy Stocks

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.”