The exception would be during what technicians call a high–kurtosis event. This can get pretty complicated, so I’ll just give you the bottom line. “Kurtosis” is something statisticians use to identify a very large deviation from the norm over a short period of time.
We have experienced this scenario a few times in the last several years, and each occasion has resulted in disproportionately negative results for energy stocks. Deviations like these happen all the time because markets are never static.
But when more of the downward moves are concentrated in short intervals, it’s a sign that a kurtosis is taking place. These are not usual and they are not merely corrections. It feels like the floor has dropped away.
However, there are almost always signs such a shift is about to take place. And we have none of them currently. Unfortunately, the wild card here is always geopolitical events.
Nonetheless, for the moment, dollar-cost averaging is a safe bet with normally solid oil and gas stocks.
We’re in the midst of the greatest investing boom in almost 60 years. And rest assured – this boom is not about to end anytime soon. You see, the flattening of the world continues to spawn new markets worth trillions of dollars; new customers that measure in the billions; an insatiable global demand for basic resources that’s growing exponentially; and a technological revolution even in the most distant markets on the planet.And Money Morning is here to help investors profit handsomely on this seismic shift in the global economy. In fact, we believe this is where the only real fortunes will be made in the months and years to come.