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Energy and the Stock Market

By Elliott H. Gue on Oct. 25, 2018

Energy has a long history of marching to its own drummer. Sometimes, that makes things difficult for investors.

Most recently that was the roughly 18 months from mid-summer 2014 to mid-winter 2016, when oil dropped from over $100 a barrel to $26 and change while the S&P 500 continued to push higher. Worse still were the late 1990s, when oil briefly sank under $10 while the NASDAQ was on its way to quintupling over a roughly two year period.

Sometimes, however, moving counter to the broad market can be a huge positive. We believe now is such a time, as the global oil market tightens and US producers ramp up their output, especially in the Bakken and the Permian Basin.

That’s not to say the energy sector is immune from stock market cycles, or even this autumn’s stepped up volatility. But it’s hard to argue that best in class energy stocks aren’t trading far closer to bear market bottoms than bull market highs.

This issue’s Energy & Income Advisor roundtable takes a deep dive into the broad market’s impact on the energy sector and what we expect to see the rest of this year.

Energy & Income Advisor

Your complete guide to energy investing, from growth stocks to high-yielders.

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.

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  • Live Chat with

    Elliott and Roger on Oct. 29, 2018

  • Portfolios & Ratings

    • Model Portfolios

      Balanced portfolios of energy stocks for aggressive and conservative investors.

    • Coverage Universe

      Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.

    • MLP Ratings

      Our assessment of every energy-related master limited partnership.

    • International Coverage Universe

      Roger Conrad’s coverage of more than 70 dividend-paying energy names.

    Experts

    • Elliott H. Gue

      Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor

    • Roger S. Conrad

      Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor