2 of the Safest Energy Stocks to Buy in a Bear Market
Investors have been taught to cheer bull markets and fear bear markets, but the fact is they both happen, and there's little you can do to avoid the normal up/down cycle of the market. A better bet than living in fear of a bear goring is to find investments that will be resilient to downturns. Enterprise Product Partners (NYSE: EPD) and Enbridge (NYSE: ENB) are two such investments in the energy sector.
What's so special about Enterprise and Enbridge is that they operate in the midstream segment of the energy sector. They own physical infrastructure like pipelines, storage, processing, and transportation assets. To simplify things a bit, they help to move oil, natural gas, and the products into which these fuels get turned, from where they are produced to where they ultimately get consumed. The key to the story is that both use a toll-taker model, charging fees for the use of their vital and difficult-to-replace assets.
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Source Fool.com
