The contrarian case for buying energy stocks just keeps getting stronger and stronger. Exxon (NYSE:XOM), after getting booted from the Dow Jones Industrial Average, just experienced its worst 30-day stretch of stock price performance in at least 40 years, according to SentimenTrader.
And it’s not just this sector flagship; energy stocks now represent the most hated stock market sector of all time according to the firm. To top it all off, The Economist recently proclaimed the death of oil (once again: see 1999 and 2003).
It’s gotten to the point, that even Justin Bieber is using the oil industry in his latest music video as a metaphor for pain and suffering. To be very clear, these are precisely the sorts of things you eventually look back on and realize were screaming buy signals at the time.
Like the Wall Street Journal calling gold a “pet rock” in 2015.
Or like Gisele Bundchen and Jay-Z publicly dumping dollars for euros in late-2007. You just don’t get these sorts of extremes in sentiment very often.
And when you do, you better take advantage of them because if you don’t you’ll be kicking yourself later on for missing something so obvious.
