Five reasons investors should not ditch energy stocks

Natalie Kenway

Eagle Asset management's US equities manager Ed Cowart has called on investors to not ditch energy stocks, after the price of Brent crude oil plunged towards a six-year low.

Investors have become unnerved by the falling oil price, which touched the $45 a barrel mark in mid-January, down from around $115 a barrel in the summer. The move has put pressure on firms operating in and linked to the energy sector as investors sell to protect portfolios.  However, Cowart, who manages the $2.7bn Nordea 1 - North American All Cap fund, said there are many companies in the sector who will remain robust and able to produce strong returns throughout this difficult phase. "The refusal by OPEC to curtail production late last year sent the price of oil and related stoc...

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