Nearly two years ago, our Contrarian Income Report service picked up cheap oil dividends that, at the time, yielded nearly 11.8%. With oil trading at negative prices (meaning producers were paying people to take barrels off of their hands), our purchase didn’t feel warm and fuzzy. But then again, most successful contrarian trades don’t.
We recognized that oil prices were likely in the midst of a “Crash ‘n’ Rally” pattern. This is an oil-price phenomenon that has played out several times before.
We discussed this back in 2021:
Energy prices tend to “crash ’n’ rally.” The crash is quick, while the ensuing rally lasts for years.… Read more