Contrarian Value Ideas

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With OPEC finally changing their tune, and the price severely clobbered over the past 2 years, it could be time to start nibbling. Looking at the price drops since 2014 -



US Energy ETF (IYE) - down 47% (from 58 to 31)


Oil ETF (OIL) - down 82% (from mid-20s to 4.5) (and was ~90 back in 2008, for a total drop of 95% since the 2008 peak)


Crude oil (WTI/West Texas) - down 76% (from 120 to 29)



The Energy ETF (IYE) has a current dividend yield of approx 3.5%, and holds the following stocks, so looks like a pretty good proxy for the sector -


Exxon Mobil - XOM 26.32%

Chevron - CVX 13.22%

Schlumberger - SLB 7.40%

Occidental Petroleum - OXY 4.27%

ConocoPhillips - COP 3.92%

EOG Resources - EOG 3.17%

Phillips 66 - PSX 3.09%

Valero Energy - VLO 2.65%

Kinder Morgan - KMI 2.44%

Halliburton - HAL 2.21%