I manage my wife's 403B (or whatever the gummint 401k is called) she has some oil and oil drillers, while I sold off some stocks (lightened her stock positions in all sectors except gold I am teetering on the move to get her out of energy in the light of the Oil spill and the resulting lawsuits, regulatory bull crap and fiasco.
Oil is down cause the dollar is up - the dollar is up cause of the EU crisis. Do you expect people to start driving less ? Do you expect people in China and India to not start owning more cars ? (like 1 in 100 have a car in China) If you answered yes then sell your oils stocks and don't look back. I bought UCO Friday and BP last week which is sporting a 7% yield and I will sell front month calls against the stock. The BP spill is a shame but we need more oil and we need deepwater drilling ...
Love it how XLE and OIH broke out just before the plunge , I was one of the suckers who bought at the end of that week. It didn't feel right though and I got out quickly . Still I am not sure why oil and these stocks plunged, doesnt' this huge spill reduce supply ? Anyway if there is one good thing out of this, it's that it shows that the people who wanted more drilling and drilling in new areas , ANWR and elsewehere were wrong as they were on many other issues. It's the end of this nonsense, what the world needs is reduced consumption and alternative energies. A good depression would help , while we wait for a technology breakthrough.