Let's begin with something the pros like to call an investment thesis, one especially worth chewing on and debating these days. Ready? OK: Energy stocks are to the mid-'00s what tech stocks were to the late '90s -- prime beneficiaries of irrational exuberance and destined to hit the skids, perhaps even hard.
Talk amongst yourselves.
OK, what'd you decide? Does the thesis hold water?
Well, with such energy-sector stalwarts as ConocoPhillips
In that category, the likes of AIG
That said, far be it from me to try and make a market call. As every Fool knows, that's almost always a losing proposition, and energy stocks may yet have plenty of, um, fuel in the tank. It's certainly worth noting that, after all, that while we're all forking over more dollars at the gas pump these days, on an inflation-adjusted basis, the price of oil has a ways to go before touching its '70s-era high-water mark.
Still, with investors chasing performance by pumping barrels of money into the sector -- always an excellent contrarian indicator -- it may be time to step off the energy gas pedal and head in the direction of market roads less traveled.