Contrarian Value Ideas

[gfp927z]

The Energy ETFs probably haven't bottomed yet, but looking at XLE, it now has a yield of 8.8% (!) This ETF holds the big names (see below).

Where the bottom will be for this sector is unclear, but it's hard to not be enticed by the 8.8% yield. This could be something to gradually build up a position in over time as a long term 'contrarian value' play. It may be a long time waiting for a rebound, but the possibility also exists for a full blown Saudi-Iran war that could devastate Saudi production. They were very close to that scenario last September -


Exxon Mobil - XOM - 22%
Chevron - CVX - 21%
Kinder Morgan - KMI - 5%
EOG Resources - EOG - 5%
ConocoPhillips - COP - 4%
Schlumberger - SLB - 4%
Marathon - MPC - 4%
Phillips 66 - PSX - 4%
Occidental - OXY - 4%
ONEOK - OKE - 3%