This week’s AAII Sentiment Survey special question asked AAII members for their opinion about how attractive oil and natural gas stocks are right now. Respondents largely fell into one of three groups. Slightly more than one third (34%) think the recent drop presents a buying opportunity. Many of these respondents said energy stocks are attractively valued right now, especially from a long-term perspective. Nearly 29% of respondents are pessimistic, with many thinking that prices could fall even further. About 16% are waiting for oil prices to stabilize or fall further.
Here is a sampling of the responses:
- “Valuations are inexpensive and downside risk, though still a factor, has been somewhat reduced.”
- “I think the price will continue to decline for the next few months.”
- “Attractive for the long term; not so sure about the near term.”
- “Good, but I’m waiting to invest. Prices may go lower…”
- “Never catch a falling knife! I think we have a way to go to hit bottom.”
- “If there were years left to my investing future, I would be a buyer.”