Oil Issues Bounce Nicely
By: Tim McPartland,
After a quiet start today oil and gas issues of all sorts are bouncing – this is the bounce we thought would come yesterday afternoon. It is likely that this is just some short covering and a bit of a ‘dead cat bounce’, and wouldn’t attach too much meaning to firmer prices. Oil prices are falling and we will need to see more data (inventory data) before making any conclusions. We are in no hurry to enter the space.
Preferred stocks Closed End Funds (CEF’s) are trading at a yearly high–looks like some of their discount to NAV is eroding today–good demand in this space today. ETF’s in this space are still off of the yearly high by 2%.
The REIT’s are doing well–as they have for a number of months. We like the space alot–but we also have memories in recent histories when they got butchered just like the MLP’s did in the last few days. We want to buy carefully here–no wild purchases. It only takes a few mistakes in any sector of the market to ruin your portfolio porformance–and we are at our limit (of mistakes) for the year already.