Quote:
Originally Posted by Leondros
You just pulled three of the largest tech stocks. We are in a tech bubble right now (atleast I believe so). This just reeks of the 2000 dot com bubble. This is not normal growth and once it subsides and some normalcy returns to the market (ie. people being happy with 5 - 8% growth year over year), these kind of stocks will once again be attractive.
I am likening oil and gas producers similar to tobacco companies in the late 2000's - sure they are going to grow out of favor, face increased scrutiny and maybe lose some initial investors. But if you look at all the tobacco charts, they are still showing great growth and still generating high amounts of cash flow.
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We are on the same page.
I agree that the tech stocks are grossly overpriced. I believe that many investors are looking at a very short term view of the world with the pandemic, and making IMO false assumptions. Sure there will be some changes to society because of the pandemic, but human nature has not changed, and many of our old ways will return to what they were. For example we are social beings, and most will end up working together physically. Also with regards to our purchases, we will want to touch, feel, see etc. a great many of the items before we buy them. My son was at Rocky Mountain Co-p the other day and he said most of the people there were returning articles they had purchased on the internet.
As for investing in oil and gas, the stocks have been beaten up so badly that IMO they are, or will become good investments at a certain point. IMO the demand for hydrocarbons, post pandemic, will continue to increase, primarily by the demands of the Third World. Until there is some colossal discovery, hydrocarbons will continue to be the cheapest, most readily available, most dependable, and overall least damaging to the environment, form of energy we have.