The price of energy is on the rise. But it isn’t a normal commodity bull market. It’s always risky to say “this time is different” when dealing with financial markets. But this time IS different. At least, for energy commodities. Why is it different? Because we have never been in a state of the global
The stock market is getting beaten up over recent days, but you wouldn’t know it if you had all your investment capital in the energy sector. Oil is up and the XLE energy ETF is near 52-week highs. XLE even rallied on Wednesday, when the rest of the market saw its largest decline in months.
For a group to get hot in a bull market trend, it’s not enough to simply have a good fundamental case. “Hot” means retail money flowing in, which equals multiple expansion and a crowd of hungry speculators looking for the next breakout in the group. For that, you need a compelling “story”. Right now, small-cap