Oil Stocks: Peak Herd Mentality

Energy sector weakness over recent years rivals the crashes seen Tech in 2000-2002 and Financials in 2007-2009. Energy’s share of the overall market has declined 87% since the 2008 peak. Current dynamics are in stark contrast to 2008/09 when peak oil supply and rising oil demand were widely expected to drive oil prices higher and…

XLE: Energy Stock Comeback Has Begun

Energy stocks are dirt cheap relative to the overall market based on current oil prices, suggesting XLE outperformance versus SP500 even in the absence of an oil-price recovery. Despite the strong cyclical nature of oil price trends, the ratio of XLE to SP500 is trading as though investors expect a continuation of the bear market…