Super Stock Blog

Let's make our own bull run!

Month: January 2017

Best Company to Own in Oil Stocks

The oil stocks have all made a nice bullish rise in the past year.  Part of the reason was the election of Donald Trump and adding the previously CEO of Exxon to his cabinet staff.  This gives investors a more bullish outlet on the oil sector and their oil investments.

This also made huge gains in Exxon Mobile (XOM) and Chevron (CVX) stock price in the past few months.  British Petroleum (BP) also went up but it didn’t have the same appreciation gain.  BP also still wields at 6.7% dividend at the current stock price.  Exxon Mobile and Chevron hold less than a 4% dividend at their current stock price.

You should remember that British Petroleum has finalized the settlement with the government.  They have already sold the necessary assets to make the payments.  They are actually quite conservative compared to the other oil companies which I believe is a good thing as it is challenging to forsee the oil prices going forward.

You might have remembered an earlier blog post that I said BP follows a Plan B strategy.  This means the company believes that oil prices will remain stagnant so they are strategizing their oil investments for low oil prices.  This is counter to Exxon and Chevron which are building their portfolio to account for higher oil prices.

With a nice dividend and a undervalued outlook, British Petroleum (BP) should be on your radar for a nice oil company.  I do believe Exxon Mobile and Chevron (CVX) are a bit overvalued at their current price as well.  I am a holder in Chevron but I will be looking for a time in the immediate future to move some of those holdings to BP where I see much better chance at appreciation in the future.

Stock Market DIP Ahead!

We have had a great bullish market since October.  Many people say the new presidency is part of the bullish market.  I also agree that this is true but I also believe we are due for some correction ahead.  President Trump will have his inauguration on January 20, 2017.  I expect this to get a lot of fanfare as well as many dissidents that would rather oust him from the presidency.  Either way, I feel a correction coming to the market.


You cannot have a bull market run forever.  When the pigs fly is when they get slaughtered.  I see an interest rate dip and market correct coming at the end of January.

What is the best way to play this?

If you see some stocks that you are interested in, I recommend waiting until the end of January.  Once you see the dip, then you can get into the stocks you want.  I would not recommend buying now where many stocks are at peak highs.  I also would recommend you try to get in the previous dividend stocks that I recommended.

In the long-term, I hope the President Trump does make changes that can help the economy.  This is the main reason he was voted into office.  There were many unemployed citizens that are looking for work.  He also suggested ways to bring companies monies back into the USA.  These are all things that should spur the economy and bring more jobs.  It’s a lot more challenging that I believe and he has a lot to juggle.

I know the government has stated that they will raise interest rates three times in 2017.  I highly doubt this will happen.  The economy is still in the doldrums and it will take time to get the economy going again.  With these concerns, I still believe Bank of America (BAC) will be a good long-term play.  The market will give you some nice dips to purchase BAC and I expect end of January will be an opportune time.