David Rosenberg: Why it's time to buy energy stocks now that Exxon Mobil has been booted out of the Dow

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It\u0027s a classic contrary signpost for the downtrodden oil and gas equity sector

Ultimately, it is the first group that dividend investors should focus on in the equity market given their relative yield attributes. The fact that utilities and consumer staples also add a defensive tilt to the equity portfolio is an added plus — not only will this group offer a great hedge, but based on our screen they currently can be purchased at very attractive valuations for those looking for income.What equity investors like is the declining case count in the U.S.

And the Fed is sounding increasingly dovish and households are sitting on a 19 per cent savings rate, so nobody got too worked up over the lack of further fiscal stimulus. Delegates cheer as U.S. President Donald Trump and Vice President Mike Pence stand on stage during the first day of the Republican National Convention on August 24, 2020, in Charlotte, North Carolina.Let’s face it, all Trump did was accentuate the rapid expansion of debt to create the illusion of durable economic growth — deregulation and debt-financed tax cuts literally added basis points and not much more.

If you think this is incredible, look at the U.K. The government there is paying the cost of half the food that people spend on certain meals eaten in restaurants, pubs or cafes.

 

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