If I have my story straight, energy, as measured by the Energy Sector SPDR (XLE) and iShares Energy ETF (IYE), peaked on May 20 and since then they are both down about 18% versus an 11% decline for the S&P 500.
I never subscribed to that line of thought as I have been expecting this to be a normal bear market (which means down something close to 30% from the October peak) complete with feel good rallies along the way but I'd be curious to hear anyone update this line of thinking.
4 comments:
Don't look at me; the kids all got DUG in their accounts on 5/1 (yeah, a little early) - lol
"Doing well" is relative. For me, doing well is less expensive fossil fuel energy and giving the heave-ho to politically correct energy scams such as ethanol to lower food costs at several levels.
Lower energy costs will raise other sectors of a diversified portfolio.
The best move I made lately was buying a spotless 2007 SUV with 16,000 miles for $12,450. I guess that takes the place of DUG in my world.
T
Interesting thought. 30% would be a standard figure for correction but Emerging markets have gone down further.. more than 50% in some cases.
actually I didn't think things would do well but I did think, if anything, energy would. Seems I'm wrong thus far and still hold most of my energy and still expect it to do well, but at lower oil prices.
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