I can`t understand10 Jul 2020 15:16
I honestly can`t understand why oil and gas companies dropped so massively over the last couple of days. We have got the price from the beginning of April now but the difference is that oil price is well over 40$, planes are getting back in the air, traffic is nearly at pre-covid levels. I mean WTF? I understand that the situation with virus is still bad but overall still way better than in April.
Over the last month when oil rose lets say 3%, BP was getting up only 1%. But when the oil dropped 2%, BP (and other oil and gas companies like Exxon) were going down 5%. Today FTSE is up, oil stabilised so I would expect at least a mild rise but we are still red. Shell and Exxon are the same, so it`s not only BP.
Observing the markets over the last 3 years I am getting pretty confident that investing in value companies is dead. Who is looking at things like P/E these days? Look at Tesla, after yesterday`s selloff on the market, Tesla didn`t even move after 40% rise in a week. Seriously I think it`s time to stay away from value companies these days...