Q: Why will the energy sector outperform in 2019? Will it matter if the overall market has a bad year?
Roger Conrad (RC): In my experience, no sector can wholly withstand an overall market meltdown, particularly if it brings a recession with it. And as if we needed a reminder, the last four plus years have shown quite clearly that energy is a cyclical business.
That said, the economy’s still growing by any useful measuring stick. This remains one of the slowest tightening cycles for the Federal Reserve I know of. And it may get slower still, if the Federal Reserve Bank President of Atlanta’s forecast for just one rate boost this year holds up. There are still some wildcards like outstanding trade disputes and how fast China grows this year. But it looks like supply is coming off the global market while it should be a solid demand year.
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In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.
Elliott and Roger on Jan. 29, 2021
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