I had an interesting listen to an oil and gas analyst recently, who compared buying oil stocks in down cycles to buying canned tuna on sale. “If you see canned tuna on sale you stock up, so when oil stocks are on sale, you should be stocking up.”
Interesting analogy, but the question is: is the tuna “chunk” or is it “flake”? Sorry to say, but there is a lot of flake out there, especially when it comes to small cap investing.
So buy smart and make sure you’re getting the chunk. In oil.