Quote:
Originally Posted by nyc999
Anyone think it's a good time to pick up BP? At a 52-week low with a nice 6% annual dividend. And is it crazier if I dump WFM for the funds? I'm up over 20% in 4 months and believe the upside is much less at this point.
I don't. Since asking the initial question in here, I set out trying to understand what the additional downside risk was for oil. It's Saturday night so I don't feel like writing a novel on my thesis, but reading this article is a start:
http://www.telegraph.co.uk/finance/o...inally-go.html
Essentially on top of that, I've been making a list of the reasons that the countries purposely driving up supply are doing so. They have a goal(s) right? What's the goal? Are they close to reaching it? Obviously they've not reached any of those goals yet outside of maybe destabilizing Russia beyond short term repair. But they've got fish they want to fry, and those fish are still alive and well. So there's still a lot of incentive to drive prices down.
This talk of $30-40 a barrel oil seems very real to me when you factor in nobody taking their foot off the gas on the production tip, reserves that were already built up, and just way more available oil than the "peak oil" folks lead us to believe.
I had already bought oil related stocks last week, not much, like $7000 worth in a long term account. But only at sub-$45 a barrel am I considering some really aggressive accumulation in some of the more healthy companies discussed in here, provided the dividend is healthy and their business can sustain the price. So I've decided to not touch these levels at all anymore. My loose plan was 1/4 position at $45, 1/4 position at sub 40, and then re-evaluate.
Criticism welcome of course, and encouraged.