Abstract
Oil and gas is probably the most enticing sector within the market currently in my opinion. The valuations of the stocks I am currently buying are all in the single digits on a P/E basis, which is less than half that of the S&P 500, and have much more potential for growth in the short and long term from higher levels of inflation on the price of oil. If the price of oil stays relatively flat from a slowing global economy, investors can still achieve double digit returns just from dividends at current levels. Therefore, any significant price inflation in the price of oil, investors can additionally expect capital gains in share price in a current market that has been somewhat flat year-to-date from fears of recession from another banking crisis. Therefore, I believe this is one of the few sectors I still feel comfortable deploying capital into given the uncertainty currently with the banking sector.
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