Without fail, every year there are January surprises.
They occur when investors receive a pop in selected stocks because of the way fund managers readjust their holdings to dress up their fourth quarter performance.
These improvements don't usually last very long.
In fact, most investors will see the affected stocks decline back to normal levels by mid- to late-January.
But for a few weeks, investors can earn a nice little return as the calendar begins the New Year. This hedge-fund effect will be of special interest to energy investors in 2013.
That's in stark contrast to last year when oil-related stocks were moving in one direction while natural gas stocks were moving in another. What's more, service companies were beginning to come off of their highs at this point in 2011, and King Coal was about to fall off a cliff of its own.
This time around, we have a fiscal cliff soap opera in the U.S., continuing credit concerns in Europe (although with a parallel rise in market optimism emerging on the continent), rising uncertainty again in the Middle East, and a simmering dispute between Japan and China.
In short, even ignoring the Mayans and their approaching December 21 deadline, there is no lack of concern in the market these days.
Still, there will be several beneficiaries in the energy sector as hedge fund managers make their moves over the next few weeks. This is likely to happen across several categories of companies.
In this case, investors would be wise emphasize two segments of the energy market that are currently on the rise: oil refineries and coal stocks.
coal energy stocks
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Now Is The Time to Buy These Oil Refiners and Coal Stocks
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Coal Stocks Are Historically Cheap - Here's What You Need to Know (WLT, BTU, ARLP)
The U.S. coal industry is facing a perfect storm and has taken a beating recently, bringing coal stocks down with it.
According to the Energy Information Administration (EIA), electricity generated by coal was down more than 20% in 2011. So it's no surprise that U.S. coal producers have been hit, and their valuations stand at 15-year lows.
With a torrent of factors dragging the industry down - from a bad reputation to dirt-cheap alternatives -can coal make a comeback?
Let's look at what's the matter with coal, why it doesn't matter in the big picture, and how you can make some money on the rebound.
According to the Energy Information Administration (EIA), electricity generated by coal was down more than 20% in 2011. So it's no surprise that U.S. coal producers have been hit, and their valuations stand at 15-year lows.
With a torrent of factors dragging the industry down - from a bad reputation to dirt-cheap alternatives -can coal make a comeback?
Let's look at what's the matter with coal, why it doesn't matter in the big picture, and how you can make some money on the rebound.
What's the Matter with Coal Stocks?
There are three big reasons why coal has been beaten down:To continue reading, please click here...