Monday, June 23, 2008

The same story on repeat

Financials are falling once again, while the oil drillers are surging. This has been a common refrain as of late, and the recent trends for both sectors are still intact. Since my energy allocation outweighs my financials allocation by about 6-to-1, this sector divergence is quite acceptable for me. Good news just continues to flow for the drillers, including this morning's release regarding a very long term contract for Transocean (common 4.7% of portfolio, calls 6.3%). As more of these deals pour in, the sector should lift even higher in the next year.