Ken Fisher on why the Energy Sector should outperform in 2023

[dan_s]

On February 14, 2024, Ken Fisher, Founder and Executive Chairman of Fisher Investment predicted that starting in March he expected the Energy Sector to outperform the overall market. Below are bullet points from the article.

> The Energy Sector underperformed the market in 2023 after the sector's exceptional performance in 2022. The Wall Street Gang rotated money out of Energy and into Tech, most of which went into the "Magnificent Seven".
> Oil prices fell in 2H 2022 over 30% after peaking in Q2 2022 (Russia invaded Ukraine in February, 2022).
> Ken expects WTI to break out of the $70 to $80 trading range in Q2 2024, primarily because oil demand is "vastly understated".
> In the U.S. the active rig count is down 86 rigs drilling for oil year-over-year and the "Good DUC" inventory has been depleted.
> Completed well costs have come down 20% to 25%.
> Natural gas prices are way down due to the mild winter weather after January, but a significant increase in U.S. natural gas export capacity is coming soon. Ken reminds his readers that Biden "pause" on approvals for new LNG export facilities has no impact on large new facilities coming online in 2024 and 2025. We could see a natural gas supply deficit within 12 months.

Since Ken made his prediction, our Sweet 16 Growth Portfolio has gained more than 7%.