It’s time to part ways with the energy stocks: Karen Firestone

“Energy” is outperforming every other sector this year but Karen Firestone (Aureus Asset Management) says these stocks are not worth owning from here and out.

OPEC+ to consider cutting oil production

Over the past six months, oil prices have lowered about 35%.

Consequently, OPEC+ is expected to agree on cutting production by more than a million barrel per day at its meeting on October 5^th. Still, Firestone said on CNBC’s “Halftime Report”:

“IEO” – the iShares U.S. Oil & Gas Exploration and Production ETF is already up more than 35% for the year.

Energy stocks are not good for a recession

Energy stocks are all the more attractive to investors for the lucrative dividend. But the looming recession, Firestone warned, is a bigger risk than dividend is a reward.

Last month, Fed Chair Jerome Powell agreed the chances of a “soft landing” were rather slim.  

A push to electrify the economy remains a long-term headwind for the legacy players as well. Firestone no longer has exposure to “energy” in her portfolio.