Macro View is very bullish - June 16

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Macro View is very bullish - June 16

Post by dan_s »

As oil prices skyrocket, energy sector stocks rally after disastrous 2020 . S&P Global .
Skyrocketing oil prices and a focus on discipline over growth have propelled energy stocks to the top of the S&P 500 so far this year. The S&P 500's energy sector climbed 44.5% from the start of the year through June 11, compared to the 13.08% growth in the overall S&P 500. Over the same period in 2020, the S&P 500 dropped by about 7%, while the large-cap index's energy sector was down about 36.2%. The rally has come as oil and gas companies have shifted their financial approach, favoring more conservative balance sheet management and debt repayment over supply growth.

Note that our Sweet 16 Growth Portfolio is up more than 120% YTD, so we are crushing the S&P 500 Energy Sector Index.

Today the EIA reported that the U.S. refinery utilization rate is over 92% and likely to go over 95% soon. That means draws from oil storage will continue, which should push oil prices higher.
Dan Steffens
Energy Prospectus Group
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