Expert: Calling A Bottom In Oil Is A Fool's Game
Calling a bottom for oil is a fool's game, according to J.C. Parets, founder of Eagle Bay Capital.
"I don't see any advantage in bottom fishing," Parets said in a recent interview with Benzinga.
The price of oil has jumped 11 percent in the past two trading days, but has seen a stunning 60 percent decline since June.
"Picking a bottom in oil, that's not something I'd like to do," he added. "Anybody who suggested buying oil since last summer has been wrong."
Related Link: Crude's Impact On The S&P This Year (In 1 Enormous Chart)
Oil company shares are "not necessarily something I'd short," Parets explained. "But I don't see energy names in a rip-roaring rally without oil prices somehow participating in it."
As for investment alternatives, "there's easier stuff out there," he said. "Look at the industrials. They've been consolidating gains in a healthy way."
Parets also suggested aerospace and defense. "That's another sector that continues to make new highs."
The United States Oil Fund LP (ETF) (NYSE: USO) is down 37.4 percent over the past three months, while the PowerShares Aerospace & Defense (ETF) (NYSE: PPA) has gained more than 3 percent over that time.
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