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The guest commentary below was written by Jesse Felder of The Felder Report. Click HERE to read the first installment. This piece does not necessarily reflect the opinion of Hedgeye.

It’s Time To Get Greedy In The Energy Sector (Part 2) - 10 1 2020 10 38 24 AM

The contrarian case for buying energy stocks just keeps getting stronger and stronger.

Exxon, after getting booted from the Dow Jones Industrial Average, just experienced its worst 30-day stretch of stock price performance in at least 40 years, according to SentimenTrader.

And it’s not just this sector flagship; energy stocks now represent the most hated stock market sector of all time according to the firm. To top it all off, The Economist recently proclaimed the death of oil (once again: see 1999 and 2003).

It’s Time To Get Greedy In The Energy Sector (Part 2) - Screen Shot 2020 09 30 at 11.05.32 AM

It’s gotten to the point, that even Justin Bieber is using the oil industry in his latest music video as a metaphor for pain and suffering. To be very clear, these are precisely the sorts of things you eventually look back on and realize were screaming buy signals at the time. Like the Wall Street Journal calling gold a “pet rock” in 2015.

It’s Time To Get Greedy In The Energy Sector (Part 2) - Screen Shot 2020 09 28 at 3.24.40 PM

Or like Gisele Bundchen and Jay-Z publicly dumping dollars for euros in late-2007.

You just don’t get these sorts of extremes in sentiment very often. And when you do, you better take advantage of them because if you don’t you’ll be kicking yourself later on for missing something so obvious.

It’s Time To Get Greedy In The Energy Sector (Part 2) - Screen Shot 2020 09 28 at 3.29.02 PM

EDITOR'S NOTE

This is a Hedgeye Guest Contributor piece written by Jesse Felder and reposted from The Felder Report blog. Felder has been managing money for over 20 years. He began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. Today he lives in Bend, Oregon and publishes The Felder Report. This piece does not necessarily reflect the opinion of Hedgeye.