We don’t want to alarm you…
And while not all commodities are bad (in fact, WealthPress Head Trader Roger Scott does like gold), there are a handful of stocks you’ll still want to consider selling right now.
So instead of focusing on the strongest stocks and sectors like we usually do, let’s talk about two energy stocks to sell, short or liquidate completely.
Over the past few years, there has been a major shift within the energy markets. Yes, it started way before anyone knew what COVID-19 was or what it could do.
In 2019, oil hit nearly $63 a barrel. But what most people don’t know is that oil had been on a long downward trend since 2014, when it was trading over $100 a barrel. (For those of you wondering, oil now sits around $41 a barrel on a good day.)
And things aren’t getting any better either. The global economy slowdown has weakened the oil supply and the second wave of COVID-19 is only increasing uncertainty surrounding the future of traditional energy markets.
When you consider that the overall sentiment in the energy market is shifting toward renewable energy and that President-elect Joe Biden will be less friendlier to traditional energy companies than Donald Trump, there’s a good reason to believe more downside is possible.
But don’t forget…
There’s also a huge movement into ESG. That stands for “environmental, social and governance,” and has been a key part of why alternative energy stocks are receiving a lot of attention instead of the blue-chip energy companies of yesterday.
(Just so we’re clear. I’m not suggesting we throw all commodities out of our portfolios. I’m only talking about the energy market.)
The current downside in the energy market isn’t limited to the U.S. It’s a global issue, and I believe foreign energy stocks will be even weaker than large-cap companies in the U.S. with plenty of cash in reserve.
That’s why I’m giving away two foreign energy stocks to sell right now, eliminate out of your portfolio completely, or if possible, consider shorting for profits from the downside.
Tune into today’s video and share your thoughts in the comment section below. What did you think of the video and the two energy stocks to sell?