There’s nothing more heartbreaking than a missed opportunity.
About five years ago, I had a conversation with Jake, a good friend of mine who was also a hedge fund manager.
Jake was telling me his biggest regret when it came to investing.
“If only I had realized how strong the market was in 2012,” he told me with shame in his eyes. “I missed out on one of the best investment periods in my life! One that would have vaulted my company into the big leagues!”
Today, Jake doesn’t have a fund to manage. All of his investors pulled their money from his fund and he’s left managing just a small amount of capital for himself.
I can’t help wondering what would have happened to his career if he hadn’t spent the majority of 2012 through 2015 with his money on the sidelines.
There are some market opportunities you just can’t afford to miss, which is why I want you to pay special attention to today’s Daily Edge opportunity.
The 2019 Market Move You Don’t Want to Miss
Whenever we see the entire market, or even a group of stocks moving higher, it’s easy to think we’ve missed the boat. Human nature tells us to wait for a pullback, rather than jumping in and buying while prices are pushing higher.
That’s exactly what my friend Jake did when the market started trading higher in 2012.
Jake realized that a shift had taken place. But he decided to wait for a pullback before he put the money in his hedge fund to work. If you’re a student of the markets, you know that the market didn’t really pull back significantly until 2015. And by that time, Jake’s investors had lost patience and pulled their money out.
This is the true definition of being “penny wise and pound foolish.”
By trying to time the market and save a few points getting in at a cheaper price, Jake missed three years’ worth of gains for himself and his investors.
I bring this story up because today’s investors may be feeling similar sentiments about the oil market.
In December, the price for a barrel of oil was in a free-fall, with oil futures hitting a low of $43.40 on Christmas Eve.
Fast forward to this week and oil just pushed over $65 per barrel on news that Trump plans to re-implement sanctions on countries that trade oil with Iran.
In short, oil has rallied more than 50% from the December low. And a number of traders that I’ve heard from are lamenting the fact that they didn’t get in when oil was cheaper, and that they can’t buy now because it’s rallied so much.
These traders are falling into the same trap that my friend Jake did. They’re afraid to put their money to work because they don’t want to look foolish if they buy now when oil prices are higher, only to experience a pullback.
It’s a tough spot to be in. Because the more oil rallies, the more they look foolish for not being in the market and taking advantage of higher oil prices.
Fortunately, you’ve been profiting from this rebound in oil, because we’ve been talking about a lot of great opportunities in the energy sector for the last several months.
You have been profiting haven’t you?
If not, don’t make the mistake of waiting any longer. Because this week could be the start of the next big push for energy investors.
An All-Star Lineup of Energy Earnings Reports
This week — starting tomorrow morning — we’ve got a handful of earnings announcements that will give us a good perspective on where energy stocks are headed this year.
Tomorrow, energy titan Hess Corp. (HES) will release its earnings report before the market opens. The company’s management team will then host a conference call at 10:00 EST where they will be sure to discuss their views on the future price of oil as well as the company’s outlook for profits the rest of this year.
And then on Friday morning, Exxon Mobil (XOM) and Chevron Corp. (CVX) will post their earnings before the market opens. The investor conference call for XOM starts at 9:30 EST and the call for CVX is scheduled for 11:00 EST.
(You can listen to the calls yourself via the “investor” tab on their respective websites.)
These three earnings reports will set the tone for the entire energy complex.
Think about the companies that not only produce oil and natural gas, but also the service companies that supply the drilling rigs, and the pipeline companies that transport oil and gas away from the wells. You’ve also got refiner companies that are currently locking in big profits from selling gasoline and diesel fuel at high prices. And even specialty companies that provide sand and water for the “fracking” process.
There are so many stocks in this industry which have already been trading higher this year. You may have seen these movements and told yourself that you’ll buy the next time these names pull back.
Today, I wanted to tell you about my friend Jake’s experience so you don’t make the same mistake and miss out on this opportunity.
Oil stocks may have already moved higher from the December lows.
But they still have a long way to go.
Keep in mind that oil companies don’t need oil prices to continue to move higher to generate profits. Just keeping oil stable at the current levels will allow big companies like Exxon and Chevron to ramp up production and generate big quarterly profits.
And that means pipeline companies will have to transport more oil from wells to the refiners. The refining companies will have to churn out more gasoline and diesel fuel.
And everyone along the way will see profits continue to climb through the summer.
So if you’re sitting on the sidelines wondering when to get in on this energy market, please don’t wait any longer.
The earnings reports coming up this week could spark a new fire under these stocks and keep the positive trend going. You’ll want to make sure your capital is invested so you can profit from this next move.
Here’s to growing and protecting your wealth!