Plunging oil prices since mid-2014 have led many equity investors to shun energy stocks. We think that’s a mistake. By studying the aftermath of previous oil shocks, we believe investors can gain insight to prepare for a possible rebound.

Financial markets have faced an increasing array of geopolitical risks this year. In our view, investors should put these events into the right context and focus on how individual companies might be affected when considering their potential impact on equity positions or allocations.

It’s often hard to resist the temptation of an inexpensive, passive equity allocation. But we think you can find plenty of good reasons to go active just by looking around the markets today.