Dividends and Energy bulls hit pause as recession looms

When consumers were talking about high prices at the pump, as an investor you may have examined the oil companies and which ones to own. For high prices at the pump means high profits at the oil companies.

According to an article by Danilo Masoni of Reuters, after 2 straight record-breaking years, investors who profited during the past 2 years in the oil patch, now have to decide to sell some holdings or do nothing.

Marko Kolanovic, a global markets strategist at JPMorgan recommended selling part of your energy portfolio but is a long-term bull.

Andrea Scauri, a fund manager at asset manager Lemanik expects oil prices to lower because of recissions risks and windfall taxes in Europe. At the moment she sold and moved to other alternatives.

Roland Kaloyan head of European equity strategy at Societe Generale is overweight energy expecting prices to increase between the 2nd and 3rd quarters.

Linking to dividend paying stocks, unless you are taking profits, owning dividend paying stocks means you can read both sides of the discussion and do nothing. Sometimes the best solution is to do nothing and allow profitable companies to buy their stock back, pay dividends and even special dividends. The result is over the long term the stock continues to climb and your assets increase.

There are more questions than answers, till the next time – to raising questions.


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