In the past week, I began to finally reap the benefits of investing a heavy portion of my portfolio in oil and energy. My average price of COP bought was $62.90 dollars a share, while XOM was about $84 dollars a share. Both stocks have lead the energy sector this past week. CVX has also had a good week, but it is not currently in my portfolio. On the crude oil side, I made a few buys with UWTI (a bullish, 3X stock) and it has definitely been my biggest money-maker throughout the past week. My gain on this stock has been over a dollar per share. Now, I will say this – one stock I truly regret not buying is ERX (3X bullish energy). I think it was a mistake on my part, because I was so bullish on energy as a sector, but I only wanted stocks that paid a strong dividend. ERX does not pay a dividend, but it has increased about $16/share since January (currently about $67) and there have been multiple opportunities to hedge the stock.
Now, I do believe the sector will have to correct itself in the near future. This means dips for COP/XOM/UWTI/ERX, and being able to time this dip properly is key. Having cash to buy more of these stocks is crucial to be successful at investing in this sector. But, I am hoping to time the dips correctly and be able to sell my current shares and buy more as they dip during the correction. I also plan on buying ERX and adding CVX to the portfolio as I draw in more paychecks from work.
As an investor, it’s important to be confident in what you invest in. If there is one thing I’ve learned as a new investor, it is to do proper research before investing. I can’t just invest in order to have specific sectors in my portfolio if it isn’t the right time to buy those stocks. When I entered the market as a new investor in the summer of 2014, the market was very strong. I didn’t have a true sense of buying during dips. I saw a lot of other blogs belonging to strong investors, who had extremely high dividend yields in large cap sectors. The reason these people are great investors is because they bought these stocks when they were low, and rode the wave of increased stock prices and racking up the dividends. Right now, many sectors in the market are strong. Energy and Oil were (and still are) lagging, and it was a great opportunity to hop into a sector that is known to pay great dividends, and I am finally feeling those benefits. Now, I need to transition into the next phase of selling in the market properly and cashing out on those gains, so I can go back in when the market corrects itself. My main point is, what ever you are confident in investing in, go ahead and make a true effort to make money and cash out!
Tell me what you guys think! Are you currently bullish on any sectors? Or do you prefer to stick to dividends strictly? Leave your thoughts in the comments!