We’re following a simple strategy in The Energy Strategist: buying stocks in beaten-down energy subsectors with strong long-term prospects and buying defensive stocks and preferreds that offer high income potential. Read More

The oil markets are already sowing the seeds of another big rally. Weak oil prices spell a moderation in new exploration investment and shrinking supplies of crude. I suspect we’ll see the global economy begin to recover in the latter half of 2009. When that happens, oil demand will stabilize, and the supplies needed to meet that consumption simply won’t be there. As we wait for this story to play out, I recommend adding a bit of income to your portfolio. Read More

The past few months have been painful for most market sectors, including energy. But there’s a silver lining: Income-oriented investors now have a once-in-a-decade opportunity to grab companies with little or no exposure to an economic slowdown or weak energy prices and lock in tax-advantaged yields of 8 to 15 percent. Read More

Warren Buffett isn’t a market-timer, and he’s admitted on numerous occasions that he’s not great at predicting short-term events. Nonetheless, from a longer-term perspective, investors would do well to follow his basic contrarian discipline of buying stocks when others are fearful and selling when others are greedy. Read More

For the past few weeks, the stock and credit markets have been taking their cue from Washington and the fate of the proposed Paulson plan to buy up troubled mortgage assets from banks. This could remain the case for a while longer. That said, I do expect passage of a bill this week, and we’re setting up for a classic yearend rally. If history is any guide, energy stocks will be among the best performers in such a move. Read More