Market Talk
The stock market is a dicey proposition. Venture into it and dabble at your own risk. Let's take a look at developing trends and postulate a theory or two for entertainment purposes only.
Stock Talk
There were two stocks we watched here before and took the gain because their valuation was seeming too high for buyers to accept.
After awhile of meandering in the mid 50's, the stocks just could not get over the hump. And yes, we correctly let them go and took a gain.
Presently, both stocks have dipped to the 40's and are seemingly showing support. I will now make a case for why it may be time to venture back in and dabble again in "some" and possibly "go long".
These two stocks above are Devon Energy (DVN) and Vital Energy (VTLE). Oil and natural gas stocks in the basins of America.
Devon (DVN) is a well-known established oil and natural gas company with good earnings and an interesting dividend policy that varies on how well they do. Vital Energy (VTLE) is an upcoming energy company that has made very smart acquisitions of oil properties in the basins of America with hundreds of high value locations to grow rigs as they expand operations.
But let's get back to notions, theory and postulations on current happenings and trends. Have you been watching how "the Brics" are expanding membership to promote de-dollarization for world trading, in particular - oil?
"In 2006, Brazil, Russia, India and China created the "Bric" group. South Africa joined in 2010, making it "Brics". The group was designed to bring together the world's most important developing countries, to challenge the political and economic power of the wealthier nations of North America and Western Europe."
Alas, our past "sort of " friend in the middle east, namely oil rich Saudi Arabia has joined the Brics.
This trend of countries breaking away from trading in US dollars could be very inflationary. Here in America, the oil companies with capacity to tap our own natural reserves could become very important and even more vital to American security.
In such a world , it seems that two commodities could increase in value - Energy such as Oil and Natural gas - and Gold.
DVN, VTLE are interesting stocks to watch and possibly pick up some shares if dabbling.
In the gold sector, a miner like Kinross Gold (KGC) could be one to watch.
For now, we close by noting that any view on the market and stocks on any particular day may change in the future days to come. That is why we watch and see how our views match up with the reality of the time. But trying to look ahead a few months into the future may be a way to do things. If you think too deep about world events and the recent alliances forming, projecting ahead can be a dicey endeavor. In all - we use the word maybe "some", not "too much" and play it accordingly. Remember never get arrogant in our various notions because things do change in the market and individual stocks are subject to many factors outside of our control.. So we try to -stay aware.
With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.
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