Expert: Calling A Bottom In Oil Is A Fool's Game
Calling a bottom for oil is a fool's game, according to J.C. Parets, founder of Eagle Bay Capital.
"I don't see any advantage in bottom fishing," Parets said in a recent interview with Benzinga.
The price of oil has jumped 11 percent in the past two trading days, but has seen a stunning 60 percent decline since June.
"Picking a bottom in oil, that's not something I'd like to do," he added. "Anybody who suggested buying oil since last summer has been wrong."
Oil company shares are "not necessarily something I'd short," Parets explained. "But I don't see energy names in a rip-roaring rally without oil prices somehow participating in it."
As for investment alternatives, "there's easier stuff out there," he said. "Look at the industrials. They've been consolidating gains in a healthy way."
Parets also suggested aerospace and defense. "That's another sector that continues to make new highs."
The United States Oil Fund LP (ETF) (NYSE: USO) is down 37.4 percent over the past three months, while the PowerShares Aerospace & Defense (ETF) (NYSE: PPA) has gained more than 3 percent over that time.
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