Energy impacts a lot of different industries. Think about the actual products… oil, coal, and natural gas. Then add in companies that focus on extraction, refining, and delivery. Those are the obvious related industries. Also consider the less obvious industries that have ties to energy prices. Chemical, food, and fiber industries, for example, depend a lot on energy markets.
Investing in the Energy Sector
Because of the ups and down fluctuations in the energy market, investing in Energy Stocks should be considered as a long term investment.
Energy stocks continue to be a good investment for the long run, because they allow you to diversify your portfolio. They’re a good hedge against inflation and geopolitical events. They represent a great opportunity to find stocks that overperform.
In the past few years, energy companies with access to shale basins and newer extraction technology have done extremely well. Companies without these advantages have suffered. So, choosing the right energy companies to invest in is critical.
The outlook for energy stocks is good right now. 2017 promises less regulation and the rollback of regulations that have had a negative affect on the traditional energy industry. This will help energy stocks to continue their reputation as one of the worlds best long term investments.