Anyway, the point was that oil is firmer and big integrated oil stocks have some interesting fundamentals. I profess no expertise in fundamentals but single digit P/E ratios with dividend yields that are double the 10-year Treasury got my interest. I cannot tell you if the P/E for energy stocks should be that low. I cannot tell you if they are paying out a lot of earnings to assuage Occupy Wall Street protestors. But to me, these two seem worthy of further investigation, not for the fundamentals but to see if the technicals tell a good story, too.
They do. Or at least it is a better story than most of the rest of the stock market. Apple does not count.
The bottom line is that big energy stocks have a lot going for them, even if the market goes down as I think it will. They may lose some value but with dividends, relative performance, on-balance volume, underlying commodity strength and few other things they should reduce the pain for those who simply must be in stocks.
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Concerning the Post Office: I can't imagine you live in NYC, and certainly not Manhattan. Some functions are done better, or at least safer, by government workers. Would you like a private army or navy? They don't make money, but you need them. In practice I find the P.O. more reliable than either UPS or Fed Ex, which have lost or allowed to be stolen packages sent to me. My postman delivers packages to my door,instead of leaving them outside the building's front door! And would you really trust your building's front door key to Fed Ex or UPS? Good luck!
Mike Foster
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