Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.

Resource and commodity stocks in general should make up only a limited portion of your portfolio—say less than 20% for a conservative investor or as much as 30% for an aggressive investor. And as part of that segment, energy stocks could make up, say half of that total. The rest could be fertilizer stocks, mining stocks and so on.

Oil and gas stocks have been below-average performers lately, and many investors are tempted to get out of the industry altogether. However, the energy sector can play a crucial role in your portfolio as a hedge against inflation. The low inflation rates of the past couple of decades deserve some of the blame for the poor performance of the sector. However, energy stocks will likely rebound in years to come as the global economy recovers.

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
  3. Downplay or avoid stocks in the broker/media limelight.

The Future of Energy and Your Investments: read this FREE Special Report, Canadian Natural Resources Stock Guide: What to look for in Canadian Energy Stocks.

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Energy Stocks Post Archives

Smart acquisitions power this stock’s high yield

Smart acquisitions power this stock’s high yield

Long-term security is the key to this Canadian stock’s successful acquisition strategy.

The company buys profitable utilities that can make immediate contributions to revenue, like the Missouri-based electric utility it bought a year ago. Plus, it sells clean energy through long-term guaranteed government contracts. Its shares… Read More

Natural Gas Stocks Are Volatile But Can Have Long-Term Value

Natural Gas Stocks Are Volatile But Can Have Long-Term Value

There are seven main reasons for the volatility of natural gas stocks. However, even with this volatility, there are some ways that investing in natural gas can lead you to long-term gains from a sector that is often considered a hedge against inflation
Successful energy stocks… Read More

North wind blowing in the right direction for this Canadian stock

North wind blowing in the right direction for this Canadian stock

Recently a Member of Pat McKeough’s Inner Circle asked about a Canadian power company that is getting a big boost from the German government. The key is Germany’s decision to phase out nuclear facilities and subsidize renewable sources like wind power.

Northland Power owns controlling interests… Read More

Will Your Renewable Energy Investment Pay Off?

Will Your Renewable Energy Investment Pay Off?

Renewable energy investment: here’s what success looks like—and what it doesn’t look like
A number of investors have been wondering if now is a good time to “green” their portfolios with a renewable energy investment in environmentally friendly companies.

We think there are a number of green… Read More

Oil vs Solar Energy: Which is the Best Investment?

Oil vs Solar Energy: Which is the Best Investment?

For energy stock investors, the oil vs solar debate needs to consider changing technology, plus supply and demand.
Short of radical advances in solar-power technology, the long-term prospect for true “grid parity”—the price at which it will be equally cheap to produce a kilowatt-hour of electricity… Read More