Bull Market Signaled by Oil Producers Valued at 19 Times Income

Investors in oil shares are more bullish on the U.S. economy than any time in the last eight years, convinced the biggest decline in equities since the bull market began will prove a buying opportunity.

The 39 energy producers and equipment makers in the Standard & Poor's 500 Index have traded at an average 19.1 times earnings in 2010, compared with 17.8 for the index. The last times they had higher valuations in 1994, 1999 and 2002, the benchmark gauge for U.S. stocks surged an average of 22 percent in the next year, according to data compiled by Bloomberg...

SFgate: Bull Market Signaled by Oil Producers Valued at 19 Times Income