Yesterday, I wrote a post about Facebook. Mark Zuckerberg was onto something in his dorm room at Harvard before he dropped out to focus on Facebook. The company went public in 2012, dropped 50%, switch their focus to mobile and the stock price hasn’t looked back. If one invested $1000 in Facebook during the IPO, you would be up over $5000 or a 500% ROI.
But all that is glitter is not gold. “All that glitters is not gold” is an aphorism stating that not everything that looks precious or true turns out to be so. This can be applied to just about any experience in life. It could also be applied to the stock market.
So the worst stocks of the decade go to:
- Apache. Ten-year performance: -78%
- Freeport-McMoRan. Ten-year performance: -68%
- Devon Energy. Ten-year performance: -66%
- The Mosaic Company. Ten-year performance: -65%
- CenturyLink. Ten-year performance: -63%
- Kraft Heinz. Ten-year performance: -56%
- Perrigo. Ten-year performance: -54%
- Under Armour. Ten-year performance: -54%
- Occidental Petroleum. Ten-year performance: – 51%
- Schlumberger. Ten-year performance: -31%
Now if you know these companies, 40% of the companies on the list were in the oil and gas industry. The oil and gas sector (aqua block) was the worst performing sector this year.
- Technology: 48%
- Communication: 32%
- S&P 500: 31%
- Financials: 31%
- Industrials: 28%
- Staples: 27%
- Discretionary: 27%
- Real Estate: 26%
- Materials: 22%
- Health Care: 20%
- Energy: 10%
And Energy compared to the SPY has under-performed going back for five years.
Now the Dow Dogs involves buying the ten stocks with the highest yields among the thirty in the Dow Jones Industrial Average at the end of each year then holding them until the end of the next year. I don’t know what they call the worst stocks of the decade and potentially hold them for 10 years. But that’s what the Smart Money is doing.
Over the last several weeks, I have been posting about the bullishness going on in the oil and gas industry by way of the Smart Money buying up assets. In particular Sam Zell, Steven Cohen, Ken Griffin and Ray Dalio, all billionaires are buying distressed oil assets in the US.
I have to start looking at this sector as well. Besides that’s the premise of my trading edge, follow the Smart Money. I’m feeling the trade that Ray Dalio bought more of. Ray didn’t become wealthy by buying asset at high prices. Recently Ray’s hedge fund bought an additional 1,177,026 shares to the fund, increasing his stake to over 2.5 million shares.
EQT Corporation operates as a natural gas production company in the United States. It produces natural gas, natural gas liquids (NGLs), and crude oil. EQT is the largest natural gas producer in the U.S. with its asset base located in the heart of the Appalachian Basin with a focus in Pennsylvania, Ohio and West Virginia.
I would like to see price close above $13 as confirmation that price will continue to rise.
I thought EQT Corp was a Master Limited Partnership, but they aren’t, so don’t they pay much dividends. Thus, I’m not interested in own the stock, but look what I just found. The Smart Money already bought LEAP options going out to January of 2021. So best believe I will be buying some options on Monday.
Look at that, went from taking about the worst stocks of the decade to wanting to get in the worst sector of decade on Money.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.