Since the previous issue of Energy and Income Advisor, energy stocks have backed off a bit more from their June 8 recovery high. The S&P 500 Energy Sector Index finished last week down -21 percent from that level, though it’s still 60.7 percent above the March 18 low.
Super majors-focused NYSE Arca Oil Index (NYSE: XOI) has given back -20.4 percent and is now up 71.6 percent from mid-March. And the midstream-heavy JP Morgan Alerian MLP Index ETN (NYSE: AMJ) has retreated -23 percent to a point 113.2 percent above the recent bottom.
Pullbacks like this one come with the territory when a market has risen as far and fast as energy stocks have since March. If it does extend, we’ll consider it an improved opportunity to buy best in class companies at better prices, with an eye on our Dream Buy levels.
In the previous issue’s feature article “What’s Ahead for Oil Prices,” we highlighted our energy market forecast with five key takeaways:
The beginning of a recovery in global oil demand from historically depressed levels, which is running somewhat faster than we had expected.
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.
Elliott and Roger on Jun. 30, 2020
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