Today’s Finviz stock map shows energy stocks up while most are down. I believe energy stocks will outperform over the next two years.
There are a couple of problems which is bullish for energy.
💣The first is obvious. Ukraine/Russia are damaging their oil/gas operations. And of course the Iran conflict is also damaging oil/gas operations in the middle east.
The trend has been a continuous escalation by politicians and those behind the scenes for these wars. I do not see that stopping. Even if there are peace deals, that does not instantly bring back production online. It will take years to repair.
🔋The second is refinery capacity. California lost 2 refineries recently. A refinery can take 10 years to build and nobody wanted to commit to new refineries due to climate change policies. AND the refinery may not be suited for the type of oil being produced.
The big oil/gas companies like Exxon and Chevron have refineries.
I personally think buying the stocks directly with the transfer agent is the best way to buy some of these stocks.
🛢️ Though I did find an ETF yesterday that looked interesting. Texas Capital Texas Oil Index ETF Ticker $OILT
It has all the big guys and more that you would want to own. It is a managed fund so the expense is .35% which is not bad for a managed fund. Generally, anything 1 and over is considered expensive.
Below are the top 10 holdings from Finviz
