Energy Stocks on Sale, MLP & High-Yield Muni ETFs Offer Safety, Yield

Energy stocks are out of favor due to sinking oil prices, but rising yields are making them an attractive contrarian play, said Michael Ball, portfolio manager for Weatherstone Capital Management. Ball added that he likes the Energy Select Sector SPDR (XLE) as the best vehicle to take advantage of depressed energy share prices. He said he also likes energy MLPs as a yield play, especially the Alerian MLP ETF (AMLP), noting that pipeline owners are less correlated to the price of oil and natural gas. Finally, Ball is bullish on high yield muni bonds like the Market Vectors High-Yield Municipal ETF (HYD) due to the attractive yields.