Why Iraq's ISIS threat is a wake-up call to investors

For several years investors have looked at energy stocks through the spectrum of the US shale gas revolution. But the ISIS insurgency threatening Iraq is providing a reminder that oil security is a real concern, explains Guinness Global Energy manager Jonathan Waghorn.

Amid arguably inflated equity markets, and after years of underperformance, energy equities are offering a very attractive combination of good value and newly positive sentiment. Energy equity valuations are driven both by the prospects for long-term energy commodity prices (both oil and gas) and the activity and earnings of individual companies. So what is prompting the change in sentiment? The ISIS threat As regards the macro environment, the recent rise of ISIS in Iraq has been a useful wake-up call. For nearly three years - until February - investor sentiment was dominated b...