Marc Faber Recommends Cheapeake Energy (CHK) on Pullback

Marc Faber continues to strongly recommend the energy sector, saying demand will continue to rise even more, in light of the Middle East crisis. He particularly points out Cheapeake Energy (NYSE:CHK) as one of his favorites, especially on a pullback.

That's not to say the Middle East has been the main catalyst for Faber, as he's been calling energy for some time now based on supply and demand alone.

"I think in a, let's say Goldilocks outlook, you have to own some oil," Faber said. "If you're very bearish about the world, it's a nightmare scenario in the Middle East and I don't think that Saudi Arabia can affect production shortfalls of Libya and Saudi Arabia itself is very vulnerable and so I would say under any scenario, I would own some oil and energy shares."

Chesapeake Energy appears to be in one of those pullbacks at this time, as it closed Tuesday at $33.70, dropping $1.91, or 5.36 percent.