The energy sector was a brutal place to invest in 2014 and 2015. In the 18 months from July 2014 to January 2016, the Energy Select Sector SPDR ETF (NYS: XLE) fell nearly 50%. That decline was driven by a collapse in the price of oil, buckling from above $90 per barrel in the summer of 2014 to below $30 in January 2016. #-ad_banner-#Today, this bear market has ended. With a new bullish cycle unfolding, this is the best time to invest in energy stocks in the last five years. Not only are energy sector yields near a multi-year high,… Read More
The energy sector was a brutal place to invest in 2014 and 2015. In the 18 months from July 2014 to January 2016, the Energy Select Sector SPDR ETF (NYS: XLE) fell nearly 50%. That decline was driven by a collapse in the price of oil, buckling from above $90 per barrel in the summer of 2014 to below $30 in January 2016. #-ad_banner-#Today, this bear market has ended. With a new bullish cycle unfolding, this is the best time to invest in energy stocks in the last five years. Not only are energy sector yields near a multi-year high, valuations are near a multi-year low. Perhaps most important, profits are set to rebound thanks to a breakthrough announcement from the Organization of Petroleum Exporting Countries (OPEC). Last week, OPEC made its biggest announcement in more than two years, saying that its members would cut global oil production by 1 million barrels per day beginning January 1, 2017. This decision has big implications for the price of oil in the short run and long run. In the short run, it caused the price of oil to jump more than 10% in one day, hitting $50 a barrel for the first… Read More