Traditionally, many income securities have come from the energy sector. Large integrated oil companies, for instance, have long been a staple of many income portfolios. A big reason for that was a business model that benefited investors: Steady demand for their product (oil) resulted in steady cash flows. Of course, the steady rise in oil prices between 2001 and 2008 didn’t hurt either. But much has changed in the past few years, as major economic trends have collided and driven oil prices lower. The emergence and economic viability of alternative energy is one such factor. The other major trend that… Read More
Traditionally, many income securities have come from the energy sector. Large integrated oil companies, for instance, have long been a staple of many income portfolios. A big reason for that was a business model that benefited investors: Steady demand for their product (oil) resulted in steady cash flows. Of course, the steady rise in oil prices between 2001 and 2008 didn’t hurt either. But much has changed in the past few years, as major economic trends have collided and driven oil prices lower. The emergence and economic viability of alternative energy is one such factor. The other major trend that has impacted the price of oil is the advances in hydraulic fracturing — what most of us know as “fracking.” This new technology that has unleashed huge oil and gas reserves hidden in the U.S. shale basins has resulted in massive growth in oil production. —Sponsored Link— Millionaire Releases His Personal Stock Checklist For 26 years, a scientist from Delaware has carefully analyzed the potential of an unusual stock pattern, and has secretly developed a formula to identify it. On just the best trades alone thus far in 2017, this pattern has delivered 31 triple… Read More