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Investors may want to consider putting money into lagging parts of the market.
Oil stocks are in trouble, according to VanEck CEO Jan van Eck.
” [oil] The supply is there.These companies are probably the next best cash flow companies. [compared to] He told CNBC’s “ETF Edge” this week that semiconductors are trading on double-digit cash flow yields. [exploration and production] and sectors of the oil market. No one cares. No one cares. ”
His company operates the VanEck Oil Services ETF. As of Jan. 31, FactSet said the ETF’s largest holdings were Schlumberger, Halliburton and Baker Hughes.
The ETF is down nearly 7% so far this year and more than 9% over the past 52 weeks. The S&P 500 index is up more than 5% so far this year.
“the [energy] “While this is below the performance of many others, it is not too bad given that the drivers of global growth are now back in earnest and are likely to continue for years to come,” van Eck said. Stated.
Strategas’ Todd Thorne also characterizes oil stocks as unloved, and sees potential for a turnaround.
“We had some pretty large outflows last year. And if the tech industry takes a hit at some point this quarter, more tactical people will shift to things like energy and health care.” said the company’s ETF and technical strategist. .
WTI crude oil posted its best weekly performance since September, capturing most of this year’s gains this week. The commodity rose 6% to settle at $76.84 per barrel.
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